7th Pay Commission: Employees get not only a DA but also an HRA gift, know what the rules are

Amid inflation, the central government has provided a huge relief to central employees. At the Cabinet meeting on Wednesday, the allowance was increased by 11 per cent. Now central employees will get a dearness allowance at the base salary of 28 per cent instead of 17. In addition, the Employees’ Home Rent Allowance (HRA) has also increased. Tell us how much the employee’s HRA is high.

How much more As per the 7th Pay Commission rules, if the allowance is higher than 25 per cent, then the house rent allowance (HRA) will also increase. The rule states that the HRA should be increased by 3 per cent for X-class cities / towns, 2 per cent for the Y class and 1 per cent for the Z category. The employee’s allowance has now risen to 28 per cent. This means that employees living in these cities / towns get 27, 18, and 9 percent of the HRA, respectively.

Residential rent allowance

Let us tell you that the government offers a home rental allowance (HRA) to employees. If the employee lives in a rented house, he or she is tax deductible. The HRA needs to be accounted for when filing an income tax return.

Let us tell you that the Central Government has increased the Dear Allowance (DA) and Dear Allowance (DR) for Central Employees and Pensioners by 11%. Now the DA or DR will be offered to employees at a rate of 28 per cent. The government’s decision will benefit about 1.14 crore employees and pensioners.

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