New Delhi: Central government employees are going to get a big hike in their salaries from January 2022, as after the hike in Dearness Allowance (DA), the government is considering increasing the House Rent Allowance (HRA) of its employees.
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The Finance Ministry has started considering the demand for implementing House Rent Allowance (HRA) of more than 11.56 lakh employees in this regard. The proposal has been sent to the Railway Board and once approved, the employees will get the revised HRA from January 2022.
Who raised the demand?
Indian Railway Technical Supervisors Association (IRTSA) and National Federation of Indian Railwaymen (NFIR) have demanded implementation of house rent allowance from January 1, 2022. This allowance can then be added to the salary of all central government employees.
How is the allowance calculated?
The house rent allowance is calculated according to the classification of cities and towns into X, Y and Z. Employees who fall in the X category will now get house rent allowance of more than Rs 5400 per month. After this, Rs 3600 per month will be paid for those living in Y category cities and Rs 1800 per month for those living in Z category cities.
How is the category determined?
The X category includes cities with a population of more than 50 lakhs. HRA will be increased to 27% for Central Government employees residing in ‘X’ category cities. According to reports, the HRA for residents of ‘Y’ and ‘Z’ categories will be increased to 18% and 9% respectively.
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