7th Pay Commission Latest News -Following the recent increase in Dearness Allowance (DA), Central government employees can expect more good news on the horizon. According to a report by OneIndia.com, the House Rent Allowance (HRA) for these employees is likely to see an upward revision soon.
The recent DA hike has already brought substantial financial benefits for Central government employees, with gratuity, Diwali bonuses, and DA arrears credited to their accounts. However, the positive developments continue, as employees may receive a significant salary increase as a New Year’s gift in 2024.
The salary hike is linked to the All India Consumer Price Index (AICPI), and the current DA stands at 46 percent based on the index for July, August, and September. With the latest AICPI index data reaching 48.54 percent at 137.5 points, a further increase of 4-5 percent in DA is expected in the coming months.
Potential Increase in Travel Allowance:
In tandem with the DA hike, the travel allowance for Central government employees is also poised to increase, as it is linked to DA. Employees in major Transport Pool TPTA cities, belonging to Grade 1 and 2, may receive Rs 1800 and Rs 1900, respectively, while Grade 3 to 8 employees could expect Rs 3600 + DA. In other cities, the rate is set at Rs 1800 + DA.
HRA Set for Revision:
Apart from these financial enhancements, House Rent Allowance (HRA) is expected to undergo revision next year, projecting an increase of around 3 percent. Historically, HRA undergoes revisions when DA exceeds 50 percent. Currently, allotted at rates of 27, 24, and 18 percent across X, Y, Z category cities, the proposed HRA hike could elevate these rates to 30, 27, and 21 percent, respectively, once the minimum allowance threshold of 50 percent is crossed.
The changes are anticipated to be effective after the HRA for Central government employees is revised in March 2024, with an expected increase of 3 percent. In general, HRA revisions occur when DA surpasses the 50 percent threshold. Presently, HRA is dispensed at rates of 27, 24, and 18 percent, categorized under X, Y, Z cities. If DA breaches the 50 percent mark, HRA is expected to rise to 30, 27, and 21 percent, respectively.