New Delhi: Thousands of central government employees will finally get dearness allowance of 28% over their basic income after high hopes. In addition, the government has increased the House Rent Allowance (HRA) for these workers and retirees. Central government employees will receive this along with their September salaries, so this is something to look forward to in October.
As a result of the DA exceeding the 25% barrier, the government increased the HRA for central government employees. Consequently, the HRA has been increased to 27%. On July 7, 2017, the Department of Expenditure issued an order stating that when the DA exceeds 25%, the HRA will also be revised. The dearness allowance has been increased to 28% with effect from July 1, necessitating an increase in HRA as well.
The HRA for these personnel is divided into three unique groups as per government mandate, based on the cities labeled X, Y and Z. Employees in cities classified as X will receive HRA of 27% of their basic pay. a result of this. The employees of Y city will get 18% HRA from the government on their basic salary. Similarly, the HRA for workers in city Z is 9% of their basic pay package. ALSO READ: RBI Monetary Policy October 2021: Highlights of RBI Governor Shaktikanta Das’s announcement
The minimum basic compensation for central government employees is around Rs 18,000 as per the 7th Pay Commission matrix. Central government employees got DA of Rs 3,060 per month on the basic pay of Rs 18,000 per month till June 2021, which is an increase of 17 per cent. From July 20, 2021, central government employees have earned a salary hike as they now get Rs 5,040 per month as per the 28 per cent DA norm. This translates to an increase of about Rs 1,980 in monthly compensation for these employees. As a result, the compensation of pensioners will be determined in the future.
It is to be noted that earlier it was expected that the government would implement a 3% hike in DA and Dearness Relief (DR) in October. However, these reports have not been validated yet as there is no strong evidence from the administration that this is the case. If this happens, the DA of government employees can increase by 31 percent.
The government first increased dearness allowance by 4% in January 2020, followed by 3% in June of the same year. In January 2021, central government employees got another hike with a 4% increase in DA. Also read: Big Update of Banking! IMPS daily transaction limit raised from Rs 2 lakh to Rs 5 lakh
Employees unions were also anticipating a 3% hike to come into effect soon based on data from AICPI, which showed that DA payable was 31%, noting that the index for June 2021 climbed 1.1 points, bringing the total Got 121.7 marks.
According to multiple media reports, if it is announced, it will be effective in the first half of 2021 and will be paid with the October paycheck. On the other hand, employee unions argue that it should be paid for September as well. Be that as it may, the next festive season will undoubtedly bring some new changes and improvements.
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