Mumbai, October 5: After the DA hike, Central Government employees awaiting the announcement of house rent allowance (HRA) hike. If reports are to be believed, the Centre may soon announce an HRA hike, however, there has been no official announcement or confirmation regarding the same. A few days ago, the Centre had increased the Dearness Allowance of government employees by 4 percent, thereby taking the DA hike to 38 percent.

Now that the DA has been hiked, employees are hopeful that the Centre will also announce an increase in HRA. The last time the Centre increased the HRA of government employees was in July 2021. Back then, the government had also hiked the DA to 28 percent. Several reports suggest that the HRA could be hiked before Diwali, however, there is no official confirmation from the government regarding the same. 7th Pay Commission: Good News on HRA Hike Likely Soon After DA Increase; Here’s How Much Raise Is Expected.

So how will the HRA of employees be calculated? As per the recommendations of the 7th Pay Commission, government employees working in ‘X’ class cities receive 27 percent HRA on basic salary while it is 18 percent for employees of ‘Y’ class cities. Similarly, the HRA for employees working in 'Z' class cities is 9 percent on the basic salary. Having said that, the minimum HRA for all three categories will be Rs 5400, Rs 3600 and Rs 1800.

According to reports, the HRA of government employees of 'X' category cities is likely to increase by 4 to 5 percent while those working in 'Y' category cities are most likely to receive a 2 percent HRA hike on the basic salary. On the other hand, a 1 percent hike in HRA is possible for employees of 'Z' category cities.

(The above story first appeared on LatestLY on Oct 05, 2022 04:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).