Millions after much hope central government employees they’ll get it in the end dearness allowance 28 percent increase over their basic pay. Along with this, the government has also increased house rent allowance (HRA) for these employees and pensioners. Central government employees will see this along with their September salary, so it is definitely something to look forward to in the month of October.
The government had increased the HRA for central government employees as the DA was more than 25 per cent. In such a situation, HRA has now been increased to 27 percent. On July 7, 2017, the Department of Expenditure had issued an order stating that when DA exceeds 25 per cent, HRA will also be revised. The dearness allowance has gone up to 28 per cent with effect from July 1, which has also necessitated an increase in HRA.
According to the order issued by the government, HRA for these employees has been divided into three different categories, which is according to the cities labeled X, Y and Z. They will get 27 per cent of their basic pay. For employees in Y cities, the government is giving them 18 per cent HRA against their basic salary. Similarly, for city Z people, HRA is 9 per cent of their basic salary package.
Based on the 7th Pay Commission matrix, the minimum basic pay for central government employees is around Rs 18,000. At this basic salary of Rs 18,000 per month, the central government employees were getting DA of Rs 3,060 till June 2021, which was around 17 per cent DA. From July 2021, central government employees have seen a hike on that as they used to get Rs 5,040 per month as per the DA norms of 28 per cent. This means that the monthly salary of these employees has increased by about Rs 1,980 originally. In view of this, the payment of pensioners will also be decided going forward.
It is to be noted that earlier it was estimated that the government would hike DA by an additional 3 per cent and dearness relief (DR) would come in October. However, these reports are yet to be confirmed as there is no clear evidence from the government that this will happen. If this happens, then government employees can increase their DA up to 31 percent.
The last dearness allowance hike was in January 2020, where the government increased it by 4 per cent, followed by a 3 per cent hike in June of the same year. Central government employees saw another hike in January of 2021, where DA once again increased by 4 per cent.
Employees unions were also expecting this 3 per cent hike soon based on data from AICPI which suggested the DA payable was 31 per cent given that the index for June 2021 rose by 1.1 points, thereby The tally came down to 121.7 points. .
So, if it is announced then it will be applicable for the first half of 2021 and it will be payable along with October salary as per several media reports. However, employee unions are content that this should also be due for September. Whatever be the case, the upcoming festive season will surely bring some new changes and improvements.
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