New Delhi | Jagran Business Desk: Days after the Central Government employees got their Dearness Allowance hikes, another allowance bonanza is set to make the financial bases of the employees more strong during the COVID-19 pandemic.

Along with the Dearness Allowance, the Centre has also revised the House Rent Allowance (HRA) for the Central government employees. Following this, from the months of August onward, the Central Government employees will receive an increased House Rent Allowance (HRA) as per the revised rates.

According to the government, the House Rent Allowance (HRA) has been increased because the Dearness Allowance has crossed the mark of 25 per cent. It is noteworthy that as per the revised Dearness Allowance rates, the Central Government employees are receiving 27 per cent DA.

How much is the increase in House Rent Allowance (HRA)?

According to the Finance Ministry's order, the Central Government employees will receive the hike in their House Rent Allowance as per the categories of the cities they reside in. For ‘X’ category cities, the hike is 27 per cent. For ‘Y’ category cities, the hike is 18 per cent. For ‘Z’ category cities, the hike is 9 per cent.

According to Harishankar Tiwari, Assistant Secretary General, All India Audit and Accounts Association, the ‘X’ category cities are the ones with a population above 50 Lakh people. The cities with above 5 Lakh population come under ‘Y’, and those below 5 Lakh population come under ‘Z’ category respectively.

Harishankar Tiwari adds that minimum HRA for Central government employees in ‘X’, ‘Y’ and ‘Z’ categories is always set at Rs 5,400, Rs 3,600 and Rs 1,800 respectively. The new rates will be calculated above these amounts.

Posted By: Mukul Sharma