Salary increase for central government employees from September
New Delhi | Jagran Business Office: Good news for central government employees, revised rates of the cost allowance (DA) will post an increase in their wages very soon. Central government employees will receive a salary increase from September itself. They will also see an increase in the rent allowance (HRA) over the coming month. This means that the salaries of central administration employees will come with a double windfall (DA and HRA) from September.
This comes after the cost allowance hike early last month. According to the Center rule, when the DA increases to 25 percent, the HRA also increases. The Expenditure Department issued an order on July 7, 2017 in which it stated that when the cost allowance exceeded 25 percent, the HRA would be revised automatically. This is why the HRA has been increased to 27 percent by the Center.
Previously, the Center said that the HRA would be granted to central government employees according to city categories such as X, Y and Z. The HRA for category X cities will be 27% of base salary, HRA for category Y cities will be 18 percent of base salary and HRA for cities in category Z will be 9 percent of base salary. If a city‘s population exceeds 5 lakh, it changes from category Z to category Y. In such a scenario, instead of 9 percent HRA, 18 percent HRA will be awarded to the employees who live there.
In addition, the minimum rent allowance for the three categories will be Rs 5,400, Rs 3,600 and Rs 1,800, respectively. The minimum base salary for central government employees is Rs 18,000 according to the 7th Wage Commission matrix. Central government employees received a DA of Rs 3,060 until June 2021 at the rate of 17%.
Posted by: Sugandha Jha