Good news for central govt employees! salary expected to rise. check DA hike, HRA calculation

Lakhs of Central government employees, who have been waiting with abated breath, will finally get their Dearness Allowance (DA) hike of 28 percent, along with their basic salary. Additionally, the House Rent Allowance (HRA) of the Central government employees has also increased. The September salary of Central government employees will now come with a double bonanza.

The government had increased the HRA for central government employees as a result of the DA exceeding the 25 percent mark. As such, the HRA has now been increased to 27 percent. On July 7, 2017, the Department of Expenditure had issued an order in which it was said that when DA will exceed 25 percent, the HRA will also be revised. Since July 1, the Dearness Allowance has increased to 28 percent, which made the increase of the HRA necessary as well.

The HRA for this personnel is divided into three unique groups, according to the government’s order, which is based on the cities labeled X, Y, and Z. Employees in cities classified as X will receive an HRA of 27% of their basic wage as a result of this. Employees in city Y will receive an 18% HRA against their basic wage from the government. Similarly, the HRA for workers in city Z is 9% of their base wage package.

The minimum basic compensation for central government employees, according to the Matrix of the 7th Pay Commission, is roughly Rs 18,000. Central government personnel received a DA of Rs 3,060 per month on basic pay of Rs 18,000 per month until June 2021, a 17 percent increase. Since July 20, 2021, central government employees have earned a raise, as they now receive Rs 5,040 per month as per the 28 percent DA criteria. This translates to a monthly compensation increase of about Rs 1,980 for these employees. As a result, the pensioners’ compensation will be determined in the future.

Employee unions were also expecting this 3 percent hike to be rolled out soon on the back of AICPI data which suggested that the DA payable was at 31 percent given that the index for June 2021 increased by 1.1 points, leaving the tally at 121.7 points.