The Finance Ministry on Tuesday issued an order to implement the Cabinet decision to hike Dearness Allowance for central government employees to 28 per cent from July 1.


With the Dearness Allowance (DA) being restored under the 7th Pay Commission for Central Government employees, meanwhile, there is more good news with reports stating that the House Rent Allowance (HRA) will also be increased.

In the order issued on July 7, 2017 the Department of Expenditure stated that when the house rent allowance shall be hiked beyond 25 percent, House Rent allowance will also be revised. Now as the dearness allowance has been hiked since July 1 to 28 pecent, HRA will also be revised.

The Central Government has increased the dearness allowance of its employees from 17% to 28%, after this announcement, while it has also purportedly increased the house rent allowance or HRA increment to 27%. In fact, the Department of Expenditure is believed to have issued an order on 7 July 2017 in which it was said that when dearness allowance will exceed 25% bracket and hence the HRA will also be revised. Since July 1, the Dearness Allowance of the employees will be increased to 28%, which requires for a revision in the HRA as well.