New Delhi: The Central Government employees are set to get a major hike in their salaries from January 2022, as after the hike in Dearness Allowance (DA), the government is mulling over increasing the House Rent Allowance (HRA) of its staff.
Brainstorming Begins
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.
Who raised the demand?
The Indian Railways Technical Supervisors Association (IRTSA) and the National Federation of Indian Railwaymen (NFIR) have demanded to implement the House Rent Allowance from January 1, 2022. This allowance can then be added to the salaries of all the central government employees.
How the allowance is calculated
The house rent allowance is calculated according to the classification of cities and towns as X, Y and Z. Employees who come under category X will now get the house rent allowance of more than Rs 5400 a month. This will be followed by Rs 3600 per month for those living in Y category cities, and Rs 1800 per month for those living in Z category cities.
How is the category decided
X category covers cities with a population of more than 50 lakh. For central government employees residing in ‘X’ category cities, HRA will be hiked to 27%. For residents of ‘Y’ and ‘Z’ categories, HRA will be hiked to 18% and 9% respectively, as per reports.