7th Pay Commission : Double Bonanza For Central Govt Employees, Salary Likely To Increase In September

7th Pay Commission : Double Bonanza For Central Govt Employees, Salary Likely To Increase In September



7th Pay Commission : Double Bonanza For Central Govt Employees, Salary Likely To Increase In September


It seems as if the Central government employees are being compensated for having suffered a grim 2020. 

Ahead of the festival season, the employees will avail the much awaited double bonanza.

Because, days after the hike in dearness allowance (DA), the Narendra Modi-led government has reportedly increased the House Rent Allowance (HRA) of the central government employees.

If reports are anything to go by, the central government employees would receive an enhanced salary from September 2021, thanks to increased HRA.

According to the Centre’s rules, the house rent allowance automatically increase and is revised when the DA exceeds 25%. 

This is also corroborated in an order of the Department of Expenditure issued in 2017.

The Centre has earlier stated the Central government employees would be granted HRA as per classification of their cities which come under X, Y and Z categories. 

And after the latest revision, the HRA for employees in X category cities will be revised to 27% of basic pay, while that for Y category cities HRA would be 18% of basic pay.

For the employees in Z category cities, the HRA will be 9% of basic pay. X class cities have population above 50 lakh. 

In case the population of a city crosses 5 lakh, then it gets upgraded from Z category to Y category, and the employees would receive enhanced HRA.

Under any given circumstances, the minimum HRA will not be less than Rs 5400, Rs 3600 and Rs 1800 at X, Y, and Z class cities respectively. 

The HRA of X, Y, Z class cities will be further revised to 30%, 20%, and 10% respectively when DA exceeds 50 per cent, the Centre’s order said.

As per national media reports, from July onwards the central government employees would receive Rs 5040 per month DA as per the 7th Pay Commission Pay Matrix rules.

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