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How is central govt HRA calculated?
The current HRA scheme which is based on the suggestion of the 6th Central Pay Commission is 30\% of basic pay + grade pay + military service pay + NPA for personnel residing in Class X cities, 20\% for those residing in Class Y cities, and 10\% for those residing in Class Z cities.
How much is HRA for central govt employees?
HRA is paid @24 percent, 16 percent and 8 percent for X, Y & Z cities respectively. HRA not to be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z cities, calculated @30 percent, 20 percent and 10 percent of basic pay of Rs 18,000.
When HRA will increase?
The Ministry of Finance has started considering the demand for implementation of 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 the approval is received, employees will get the revised HRA from January 2022.
What happens when Da crosses 25\%?
The Department of Expenditure had issued an order on 7 July 2017 stating that when the dearness allowance crosses 25 percent, the house rent allowance will be revised. Since July 1, the dearness allowance has been hiked to 28 percent, due to which the house rent allowance has also been revised.
Is HRA revised?
HRA has been revised to 27\%, 18\% and 9\% from July 2021 for all groups of Central Government employees.
How is HRA calculated for state government employees?
In order to calculate the HRA, the salary is defined as the sum of the basic salary, dearness allowances and any other commissions. If an employee does not receive a commission or a dearness allowance, then the HRA will be around 40\% – 50\% of his/her basic salary.
Is HRA increased for central govt employees?
Employees started getting increased HRA The modification in House Rent Allowance (HRA) for central employees has been made on the basis of dearness allowance, according to a DoPT announcement. Other central government employees are now being included in the increased HRA.
What will be the HRA from July 2021?
What is the expected DA from July 2021 for central govt employees?
The decision was announced during a cabinet briefing on Thursday. The DA will be hiked by 3 per cent to 31 per cent which will incur an additional cost of Rs 9,488.70 cr. The decision is expected to benefit 47.14 lakh central employees and 68.62 lakh pensioners. It will be implemented with effect from 1 July 2021.