Good news for Central govt employees! Salary expected to rise. Check DA Hike, HRA calculation

New Delhi: Thousands of Central government employees will finally receive their Dearness Allowance raise of 28% on top of their basic income, after great expectation. In addition, the government has increased the House Rent Allowance (HRA) for these workers and retirees. Employees of the central government will receive this with their September paycheck, so it's something to look forward to heading into October.

As a result of the DA exceeding the 25% barrier, the government boosted the HRA for central government employees. As a result, the HRA has been hiked to 27%. On July 7, 2017, the Department of Expenditure issued an order stating that when the DA exceeds 25%, the HRA will be amended as well. The Dearness Allowance has been increased to 28% since July 1, necessitating an increase in the HRA as well.

The HRA for these personnel is divided into three unique groups, according to the government's order, which is based on the cities labelled X, Y, and Z. Employees in cities classified as X will receive an HRA of 27% of their basic wage as a result of this. Employees in city Y will receive an 18% HRA against their basic wage from the government. Similarly, the HRA for workers in city Z is 9% of their base wage package.

The minimum basic compensation for central government employees, according to the Matrix of the 7th Pay Commission, is roughly Rs 18,000. Central government personnel received a DA of Rs 3,060 per month on basic pay of Rs 18,000 per month until June 2021, a 17 percent increase. Since July 20, 2021, central government employees have earned a raise, as they now receive Rs 5,040 per month as per the 28 percent DA criteria. This translates to a monthly compensation increase of about Rs 1,980 for these employees. As a result, the pensioners' compensation will be determined in the future.

It should be noted that it was previously expected that the government will implement a 3% increase in the DA and dearness relief (DR) in October. These reports, however, have yet to be validated because there has been no convincing evidence from the administration that this is the case. Employees of the government might have their DA increased to a startling 31 percent if this happens.

The government previously increased the Dearness Allowance by 4% in January 2020, followed by another 3% rise in June of the same year. In January 2021, central government employees received yet another raise, with the DA increasing by 4%.

Employee unions were also anticipating the 3% increase to be implemented soon, based on AICPI data that revealed the DA due was at 31%, given that the index for June 2021 climbed by 1.1 points, bringing the total to 121.7 points.

According to many media reports, if it is declared, it will be effective in the first half of 2021 and will be paid with the October paycheck. Employee unions, on the other hand, argue that it should be paid for September as well. Whatever the case may be, the next festival season will undoubtedly usher in some new alterations and improvements.