Mumbai, November 2: Central government employees are likely to receive good news once again. After receiving the much needed DA hike, the government is considering to give another hike to its employees. According to reports, the Centre is likely to hike the HRA of government employees. If the government approves the house rent allowance (HRA), then the salary of government employees is also likely to increase.

With the DA hike already announced, a revision in HRA is also expected rather sooner than later. In September 2022, the Centre raised the Dearness Allowance by 4 percent. This decision by the Centre benefitted government employees and pensioners. However, after the DA hike, an increase in HRA will act as a double bonanza for government employees. 7th Pay Commission Latest News Today: Salary Hike For Central Employees Soon? Reports Say Govt May Raise Fitment Factor, Basic Pay.

The last time the HRA of government employees was increased in July 2021. Back then, the government had also increased the DA to 28 percent. Now that the Central government has approved a 4 percent DA hike for its employees, an increased in HRA can't be ruled out. However, the question is how will the HRA of employees be calculated?

Under the 7th Pay Commission recommendations, government employees working in ‘X’ class cities receive 27 percent HRA on basic salary. On the other hand, government employees working in ‘Y’ class cities receive 18 percent HRA and the one's working in 'Z' class cities receive 9 percent HRA on the basic salary. As per the 7th Pay Commission, the minimum house rent allowance for employees of all three categories is Rs 5400, Rs 3600 and Rs 1800. 7th Pay Commission Latest News Today: Dearness Relief Calculation and Rules of Commutation to Pensioners Explained Here.

How Much HRA Will Increase?

According to reports, the HRA of government employee will be increased based on the category of the cities they work in. So, the HRA of government employees working in 'X' category cities is likely to increase by 4 to 5 percent while those working in the 'Y' category cities are likely to receive a 2 percent HRA hike on their basic salary. Besides, reports also suggest that employees of 'Z' category cities could receive a 1 percent hike in HRA. At present the employees of 'X', 'Y' and 'Z' categories are receiving an HRA of 27, 18 to 20 and 9-10 percent respectively.

(The above story first appeared on LatestLY on Nov 02, 2022 02:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).