DA HRA Hike: Double Bonanza Scheme For Central Government Employees in 2024

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DA HRA Hike: There is the latest news which contains a big update regarding dearness allowance of employees. The employees have received two big good news from the government. Recently, there has been a confirmation of a 4 per cent increase in the dearness allowance of central employees from the government. Moreover, there will also be an increase in the HRA.

In this manner, the salary of the employees will be enhanced. So, this is a sort of good news for central government employees. Recently the new dearness allowance of central employees has been confirmed. Also, a decision on this is expected by March. This matter will not stop only at dearness allowance.

DA HRA Hike in 2024

As soon as there is a hike in the DA another good news will be waiting for the government employees. The government is also thinking about the increase in the House Rent Allowance for the employees. There is a confirmation of 50 percent dearness allowance. Also, after this, there will be several revisions in HRA. An increase of 3 percent is required in this. There is a confirmation of 4 percent dearness allowance till now. (DA HRA Hike)

It will get approval by the Union Cabinet in March. As a matter of fact, in this situation, there will be a dearness allowance to central government employees. There will be implementation of this from January 1, 2024. Also, it is a fact that in July 2021 there was a revision of 3 percent in HRA when the dearness allowance crossed 25 percent. The upper limit of HRA was increased from 24 percent to 27 percent. Once the dearness allowance reaches 50 percent there will be a revision in HRA. So, there will be an increase by 3 per cent once again.(DA HRA Hike)

If we talk about the HRA of metro cities i.e. those cities which fall in X category will increase to 30 percent. Those employees who are working in these cities will be paid a house rent allowance at the rate of 30 percent. Also, the revision of House Rent Allowance (HRA) for central government employees is done based on dearness allowance as per the details given by the Department of Personnel and Training (DoPT).

The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. As per the current category of cities, the current rate is 27 percent, 18 percent and 9 percent. This increase in HRA along with DA is applicable from July 1, 2021. But, a memorandum had been issued by the government in the year 2016.

There were instructions to revise HRA along with DA Hike from time to time in this memorandum. There was a revision in HRA when the dearness allowance increased to 25 percent in 2021. Also, the next revision in HRA is expected after the revision in dearness allowance.

HRA can be calculated using a formula. According to the category of the city in the present situation, house rent is given to central government employees. The government has divided cities/towns into X, Y and Z categories. Also, the government provides 27 percent house rent allowance in X category, 18 percent in Y category and 9 percent in Z category as per the latest data. The house rent allowance depends on the basic salary of the employee. (DA HRA Hike)

DA HRA Hike % in different cities

Cities covered in the X category – Delhi, Ahmedabad, Bengaluru, Mumbai, Pune, Chennai and Kolkata have been kept in the X category. The employees who are working here get an HRA of 27 per cent of the basic pay.

Cities covered in Y category – Patna, Lucknow, Visakhapatnam, Guntur, Vijayawada, Guwahati, Chandigarh, Raipur, Rajkot, Jamnagar, Vadodara, Surat, Faridabad, Ghaziabad, Gurgaon, Noida, Ranchi, Jammu, Srinagar, Gwalior, Indore, Bhopal, Jabalpur, Ujjain, Kolhapur, Aurangabad, Nagpur, Sangli, Solapur, Nashik, Nanded, Bhiwadi, Amravati, Cuttack, Bhubaneswar, Rourkela, Amritsar, Jalandhar, Ludhiana, Bikaner, Jaipur, Jodhpur, Kota, Ajmer, Moradabad, Meerut, Bareilly, Cities like Aligarh, Agra, Lucknow, Kanpur, Allahabad, Gorakhpur, Firozabad, Jhansi, Varanasi, Saharanpur have been kept in Y category. The employees working here get an HRA of 18 percent of the basic pay.

Cities covered in Z category- Apart from the cities of X and Y category, all other cities have been kept in Z category. The employees who work in these cities get HRA of 9 percent of the basic pay. (DA HRA Hike)

There will be the next revision in House Rent Allowance in March 2024. As soon as the dearness allowance reaches 50 per cent, the maximum rate of HRA will increase from the existing 27 per cent to 30 per cent. This will be for employees falling in X category. Also, if we consider the second category i.e. Y, the revision will be about 2 percent. The current level of this is 18%, and there will be an increase of about 20%.

Z category employees will get 10% HRA, which has been increased by 1 percent. When there was the implementation of the 7th Pay Commission, HRA was reduced from the range of 30, 20 and 10 percent to 24, 18 and 9 percent respectively. Also, there was the creation of its three categories which are X, Y and Z. At that time there was a reduction in the DA to zero. (DA HRA Hike)

It has been mentioned in the notification of DoPT that when DA reaches the twenty-five percent mark, there will be a revision in the HRA automatically and there will be an increase of 3, 2, and 1 percent according to the category. When DA reaches 50 percent, there will be an increase in the HRA in the same manner. (DA HRA Hike)

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