7th Pay Commission: After DA hike, HRA too to be raised

New Delhi, July 20: With the Dearness Allowance (DA) being restored under the 7th Pay Commission for Central Government employees, there is more good news with reports stating that the House Rent Allowance (HRA) will also be increased.

The CG employees are likely to get an enhanced HRA increase in their salaries from the month of August.

This is primarily because the the DA has exceeded 25 per cent. Reports say that the HRA will be increased to 27 per cent. The report also said that the Department of Expenditure is believed to have issued an order dated July 7 2021 stating when the DA exceeds the 25 per cent bracket, the HRA will also be revised. The HRA also requires a revision since the DA of the CG employees will be increased to 28 per cent.

The HRA would however vary from city to city. The cities are divided into three categories-X,Y,Z. For the X category cities, the HRA would be 27 per cent and for the Y and Z it would be 18 and 9 per cent respectively of the basic pay.