7th Pay Commission: Central government employees' salary increased by Rs 12,600, government announced

The central government has increased the dearness allowance (DA) of lakhs of employees by 50%. (7th Pay Commission) The government had announced this in the first week of March. It has been implemented for central employees across the country from January 1, 2024.

As per the 7th Pay Commission rules, when DA becomes 50%, there is a change in House Rent Allowance (HRA) and some allowances as well. After the increase in DA, now central employees are waiting for changes in other allowances as well.

No order has come on change in HRA-

The list of allowances has already been released by DoPT. It will be revised after the increase in DA this month. However, no order has come yet regarding the change in HRA. Now the question is whether the central government will give separate information about the change in HRA. Because DA has reached 50%? In such a situation, how much will the HRA increase? This is the big question. Let's know the answers to these questions-

Change in HRA decided when DA becomes 50% (7th Pay Commission)-

Change in HRA is certain when the DA of central employees reaches 50%. But you must know that the change in DA affects the HRA of central employees according to the category of the city. This city is the one where the employee and his family are living.

For the calculation of HRA, cities are divided into categories X, Y and Z based on certain factors. As per the 7th Pay Commission, from July 1, 2017, HRA has been made 24%, 16% and 8% of the basic salary for category X, Y and Z cities respectively.

Calculation of HRA as per old rate-

Later when DA reached 25%, the rate of HRA in cities X, Y and Z was changed to 27%, 18% and 9% of the basic salary respectively. So if the basic pay of an employee is Rs 35,000, then the HRA he gets according to the city category will be as follows-

1.) For X category cities, 27% of Rs 35,000 i.e. Rs 9,450

2.) For Y category cities, 18% of Rs 35,000 i.e. Rs 6,300

3.) For Z category cities, 9% of Rs 35,000 i.e. Rs 3,150

In this way, HRA for X category city will be Rs 9,450, for Y category cities it will be Rs 6,300 and for Z type city it will be Rs 3,150. (7th Pay Commission) But now as per the recommendation of the 7th Pay Commission, when DA is 50%, HRA rate should be 30%, 20% and 10% respectively for X, Y and Z category cities.

Calculation of HRA as per the new rate-

Now, as per the new rate, the central government employees will be given revised HRA on a basic pay of Rs 35,000. Let us see the calculation as per the new rate-

1.) For X category cities, 30% of Rs 35,000 i.e. Rs 10,500

2.) For Y category cities, 20% of Rs 35,000 i.e. Rs 7,000

3.) For Z category cities, 10% of Rs 35,000 i.e. Rs 3,500

How much difference will it make in the salary-

In this way, HRA will increase to Rs 10,500 for type X city, Rs 7,000 for type Y and Rs 3,500 for type Z city. That means, people living in type X city will get Rs 1050 more per month.

On an annual basis, it is Rs 12600. Similarly, for Y category people, it increased from Rs 6,300 to Rs 7,000. There was a difference of Rs 8400 annually. Similarly, for Z category people, it increased from Rs 3,150 to Rs 3,500 and increased by Rs 4200 annually .