7th pay commission HRA will increase by 3 percent before Dussehra!

By Lokmat English Desk | Published: October 2, 2021 08:20 PM2021-10-02T20:20:55+5:302021-10-02T20:20:55+5:30


Prime Minister Narendra Modi's government will give good news to government employees during the festive season. The government will increase the housing allowance (HRA) of central employees by 3 per cent.

The government has not even paid the arrears of inflation allowance that has been withheld for a year and a half. The inflation allowance (DA) was increased from 17 per cent to 28 per cent from July 2021. Now the government has increased the HRA for the month of August by 3 per cent to 25 per cent of the basic salary.

The central government has issued orders to increase housing allowance and DA on the basis of basic salary of government employees. As a rule, HRA was increased, as DA is more than 25 percent. In such a situation, the Center has increased the HRA to 27.

The Expenditure Department of the Central Government had issued an order on July 7, 2017 stating that when the DA is more than 25 per cent, the HRA will also be changed. Now the inflation allowance has gone up to 28 per cent from July 1, so the HRA should also be increased.

HRA is being paid at 27 per cent, 18 per cent and 9 per cent, depending on the existing city category of the employee. This increase is effective from 1 July 2021 with DA. HRAs are categorized by X, Y and Z class cities.

In other words, if a central employee is in an X category city, he will now get an HRA of more than Rs 5,400 per month. After this, Y category employees will get Rs 3,600 per month and Z class employees will get Rs 1,800 per month.

According to the 7th Pay Commission, the minimum basic salary of central employees is Rs 18,000. At the same time, the basic salary of private sector employees starts from Rs 15,000.

Central employees were getting DA at Rs 3,060 on a basic salary of Rs 18,000 at 17 per cent till June 2021. From July 2021, central employees will get Rs 5,040 per month at 28 per cent DA rate. Now the monthly salary of the employees has been increased by Rs 1,980.