7th Pay Commission: Modi govt may announce hike in HRA of Central govt employees

In the new year, the Modi government can give another piece of good news to the central employees. The Modi government can now make another increase in the HRA of Central Employees. The government may soon announce an increase in HRA. According to media reports, the increase could be implemented from January 2022 next year. Before Diwali, the dearness allowance (DA) of employees was raised to 31 per cent.

The government is discussing raising HRA. The Finance Ministry has started considering the demand for HRA for more than 11.56 lakh employees. The proposal has been sent to the Railway Board for approval. Employees will receive HRA from January 2021 once the proposal is approved. As soon as these employees get HRA, their salary will increase tremendously. The Indian Railway Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR) have demanded that HRA be implemented from January 1, 2021.

Housing Allowance (HRA) is categorized according to X, Y and Z class cities. This means that X category employees will now get an HRA of more than Rs 5,400 per month. After this the Y class person will get HRA of Rs. 3600 per month and then the Z class person will get HRA of Rs. 1800 per month. Cities with a population of over 50 million fall into the X category. Central employees in these cities will get 27 percent HRA. Y category cities will have 18 per cent and Z category 9 per cent.