7th Wage Commission: Good news for central administration employees! THIS allowance can increase your salary, here’s how | Personal finance news

New Delhi: The government approved various allowances for government employees during the year 2021. After an 11% increase in the first DA, a 3% increase was authorized. Employees also received an increase in TA in addition to the Diwali bonus.

They also receive compensation for expensive arrears by adding them up. Another allowance for central government employees is currently under consideration, with benefits starting next year, that is, in January.

HRA will increase

This increase will be made in the House Rent Allowance, or HRA, resulting in a significant increase in salary. In this context, the Ministry of Finance has started to discuss the request for the implementation of the rent allowance (HRA) for more than 11.56 lakh employees. We inform you that this proposal has been submitted for approval to the Railway Council.

Employees will begin receiving HRA benefits in January 2021 if this plan is approved. As soon as these employees receive HRA, their salaries will skyrocket. The National Railway Federation (NFIR) and the Indian Railway Technical Supervisors Association (IRTSA) have called on the government to introduce the HRA from January 1, 2021.

Employees started to have increased HRA

Indeed, if the cost allowance exceeds 25%, the HRA is immediately updated. The modification of the rent allowance (HRA) for central employees was made on the basis of the high cost allowance, according to a DoPT announcement. Other central government employees are now included in the increased HRA.

As a result, all employees began to reap the benefits of a larger HRA. HRA started getting 27%, 18% and 9% depending on the city category. With DA, this increase came into effect on July 1, 2021.

City wise HRA is available

It should be noted that the rent allowance (HRA) is divided into three categories: cities X, Y and Z. That is to say that employees in category X will now receive more than Rs 5,400 in HRA each month. Subsequently, a person from class Y will be paid 3600 Rs per month, while a person from class Z will be paid 1800 Rs per month.

Cities with populations over 50 lakhs are rated X. HRA will be paid to central staff in some cities at a rate of 27%. It will be 18% in cities of category Y and 9% in cities of category Z.



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