HRA Hike Update: The central government has given employees a present of enhanced dearness allowance. Employees of the central government may soon receive a rise in their HRA (house rent allowance). Prior to Diwali (2023), the government has made the decision to deposit bonuses, deferred wages, and outstanding balances into the employee accounts. Currently, 46% of employees receive disability benefits. The HRA will be revised following the DA hike.
HRA Update Aligned with DA
DoPT claims that workers’ dwelling rent allowances are updated in accordance with DA. The HRA categories vary based on the city. Currently, residents in city X receive 27 percent of HRA, residents of city Y receive 18 percent, and residents of city Z receive 9 percent.
HRA Revision Aligned with DA Hike
Our sister website Zed Business reports that the HRA would be revised in accordance with the DA hike. The current plan is for the next modification to take place in 2024. It might only go up at the start of January. The upcoming modification to HRA is anticipated to be 3%.
Exploring the 27% Maximum Rate
Employees are currently eligible for HRA at a maximum rate of 27%, with potential increases of 3% to 30%. X category central personnel receive 27 percent HRA; if DA is 50 percent, they will receive 30 percent. Simultaneously, it will rise from 18% to 20% for those in the Y Class. It will rise from 9 percent to 10 percent for those in the Z Class.
Identifying X Category Cities
Let us inform you that cities falling under the X category have a population of more than 50 lakh. The Finance Department memorandum states that HRA will increase to 30 percent, 20 percent, and 10 percent if DA surpasses 50 percent.
A 4% Hike in Dearness Allowance
The government has just raised the dearness allowance for central employees. The DA has been raised by the government at a rate of 4%. Employees will now receive DA at a 46 percent rate. In addition, arrears for the months of July, August, and September will be collected in cash.
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