7th Pay Commission: Salary of Central Government Employees May Increase Again In July; Big Update on DA, TA & HRA

7th Pay Commission: Good news for central government employees and pensioners. According to the latest media reports, after increasing the Dearness Allowance (DA), now the government is planning to increase the House Rent Allowance (HRA), gratuity, city allowance, and travel allowance of the employees. The Modi government is in discussion with the officials regarding this and it is expected that by July, the central employees will get a huge increase in their salary.

Travel allowance, PF may also be increased

Reports also said that the Centre can once again increase the travel allowance and compensatory (city) allowance by 3%. At present, the employees are getting HRA at the rate of 27%, 18%, and 9%. The HRA for X category employees may increase by 3 percent, Y category employees by 2 percent, and Z category employees by 1 percent.

In addition, the provident fund (PF) and gratuity can also be increased. Since the monthly PF and gratuity of the employees is calculated from the basic pay and DA, the PF and gratuity are bound to increase due to the increase in dearness allowance. There is a possibility that it may increase even before July.

According to the recommendations of the 7th Pay Commission, the dearness allowance and dearness relief is increased twice a year. This increase is done on a half-yearly basis.

The DA/DR of central employees-pensioners has doubled in the last 9 months. With this, the possibility of an increase in house rent allowance, and travel allowance has also increased.

HRA Calculation

At present, the employees are getting HRA at the rate of 27%, 18% and 9%. According to the 7th Pay Matrix, the maximum basic pay of the employees is Rs 56,900, then the HRA is 27%, then there will be a profit of 20000 in the salary.

The house rent allowance is Rs 56900 x 27/100 = Rs 15363 per month, so 30% HRA is Rs 56,900 x 30/100 = Rs 17,070 per month, i.e. the total difference will be Rs 1707 per month. Hence the annual HRA will increase by Rs 20,484.

At present, the employees of the X category get HRA at the rate of 27 percent of the basic salary, 18 to 20 percent of the Y category, and 9 to 10 percent of the Z category.

These rates differ from region to region and currently, the minimum HRA for all three categories is Rs 5400, 3600, and Rs 1800.

Source – India.com