7th Pay Commission: Central government employees’ salaries could increase by Rs 8,100, here’s why

7th Pay Commission: Lakhs of central government employees are expected to receive a major hike in their salaries starting from January 2022.

New Delhi: In what could be a post-Diwali delight, lakhs of central government employees are expected to receive a major hike in their salaries starting from January 2022. Under the 7th Pay Commission, the salary of the employees will increase due to a hike in the house rent allowance (HRA), a major part of the salary, especially of government employees. 

The Finance Ministry has already begun its planning on increasing the HRA of central government employees, according to a report by Jagran.com. The move is reportedly expected to benefit more than 11.56 lakh employees working with Indian Railways. 

If the Central government approves the proposal, then the government will start crediting the increased HRA starting from January 2022. The Indian Railways Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR) have been demanding the implementation of increased HRA. 

Harishankar Tiwari, former president of AG Office Brotherhood and general secretary of the All India Accounts and Audit Committee, told Jagran News that the increase in dearness allowance will increase HRA and Transport Allowance (TA).

In the 7th Pay Commission, salaries of employees increase when the Centre rolls out DA or HRA hike. Tiwari pointed out that according to the 7th Pay Commission, HRA is due to increase when the DA reaches above 25% of the basic salary. The HRA will increase in the rate from 8, 16, 24 per cent to 9, 18, and 27 per cent.

He also highlighted that if an employee’s basic pay is Rs 30,000, then the benefit will now stand in a range of about Rs Rs 5400 to Rs 8100 per month. Moreover, the latest updates have been fixed at a minimum of Rs 5400 per month. Also Read: Fixed Deposits: Now you can get up to 7% interest on 3-year FDs; here’s how

HRA is a crucial salary component paid to employees by an employer towards the accommodation cost of living in that city. Also Read: Photo app sues Facebook’s Meta for copying its main feature for Instagram