7th Pay Commission Latest News Today: Here comes a piece of good news for the Central government employees. They will receive an increased salary from September itself. After their hike in dearness allowance last month, the Central government has also increased their House Rent Allowance. Now from the month of September 2021, they will receive their increased HRA and accordingly they will receive an increased salary. Their September salary will come with a double bonanza DA and HRA.
As per the rule of the Centre, when the DA increases to 25 per cent, the HRA also increases. Hence, the Centre increased their HRA to 27%. In fact, the Department of Expenditure had issued an order on 7 July 2017 in which it said that when the dearness allowance will exceed 25%, the HRA will be revised automatically.
As reported by Zee News, the Centre has earlier said that the HRA will be granted to Central government employees according to the categories of the cities such as X, Y and Z. After revision, the HRA for X category cities will be 27% of basic pay, similarly, HRA for Y category cities will be 18% of basic pay and for Z category cities, it will be 9% of basic pay.
As per the guidelines, if the population of a city crosses 5 lakhs then it gets upgraded from Z category to Y category. That is, instead of 9%, 18% HRA will be granted to employees there. The cities whose population is more than 50 lakhs, that falls in the X category. The minimum house rent allowance for all the three categories will be Rs 5400, Rs 3600 and Rs 1800. According to the Department of Expenditure, when the dearness allowance reaches 50%, the HRA will be reduced to 30%, 20% and 10% for X, Y and Z cities.
Now, as per the 7th Pay Commission Pay Matrix, the minimum basic salary of central government employees is Rs 18,000. On this basic salary of Rs 18,000, the central employees were getting DA of Rs 3060 till June 2021 at the rate of 17%. From July 2021 onwards, they will now get Rs 5040 per month according to 28% dearness allowance. That is, Rs 1980 will be added to the monthly salary.