The Government has a big surprise for all their employees. The Central Government employees are expected to receive a double bonus this month due to hike in Dearness Allowance (DA) and Dearness Relief (DR).
As per an order issued by the Department of Expenditure, Government has decided to increase in Dearness Allowance (DA) by over 25% followed by a HRA (Housing Rent Allowance) hike. As the central government has increase the DA of over 1 Crore government employees and pensioners to 28% since July 1, 2021, it is yet to pay them the pending DA installments for over a year and half.
Central government employees have been waiting for their Dearness Allowance for almost a year and a half. The Finance ministry had commented that the three pending DA installments for all the 1.13 crore recipients will be restored all at once in the revised rates, effective from July 1, 2021.
Under the 7th pay commission, the central government has hiked the dearness allowance, dearness relief & house rent allowance for its employees. While issuing the order, the centre had said that the DA & HRA of central Government employees should be increased on the basis of their basic salary.
As per the rules framed by the centre, the HRA would be increased by 3 % when DA crosses 25% of the employee’s basic pay. The department of Expenditure had issued an order in 2017 saying that when the DA will exceed 25%, the HRA will be revised automatically.
According to reports, revised HRA will be paid along with the salary of this month. The central government employees get the HRA hike as per the categories of the cities they live in. For those residing in ‘X’ Categories cities, the hike will be 27%. For residents of ‘Y’ & ‘Z’ categories, the HRA hike will be 18 % and 9% respectively.
