Mumbai, January 11: Central government employees under 7th pay commission, who are waiting to receive updates about Dearness Allowance hike and fitment factor raise among others might receive some good news soon. According to various media reports, the Central government is likely to take a decision on fitment factor post the Union Budget presentation.

Meanwhile, a report in News18 said that the House Building Advance (HBA) is likely to be increased for Central government employees under the 7th pay commission. The Ministry of Housing and Urban Affairs through its memo dated April 1, 2022, lowered the rate of interest on HBA to 7.1 percent till March 31, 2023. 7th Pay Commission Latest News Today: Hike in Fitment Factor After Budget 2023 Presentation?.

Central Government employees under 7th CPC are eligible for low-interest HBA. It must be noted that the HBA is subject to an interest rate of 7.1 percent. However, from the next financial year, the Narendra Modi-led government is likely to increase interest rates on HBA.

As per the 7th CPC, the HBA facility is offered to Central government employees, who can use HBA to build new home, buy a plot or even use it in order to pay back loans or any types of advances obtained from the government. Besides, government employees can also use HBA to expand their existing home. 7th Pay Commission: Latest AICPI Figure Released, Here’s What It Means For DA Hike in 2023.

Under 7th pay commission, Central government employees can get 34 months of basic pay with an HBA cap of Rs 25 lakh. However, government employees must note that they they will get the lowest amount as HBA if the cost of the house is less than Rs 25 lakh. Another notable feature of HBA is the fact that if the husband and wife are government servants then HBA would be given to both separately.

(The above story first appeared on LatestLY on Jan 11, 2023 03:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).