New Delhi | Jagran Business Desk: Good news for all the Central government employees as the Centre is planning to increase DA (Dearness Allowance) again. Though the Centre is yet to finalised June's DA hike, however, as per AICPI data from January to May 2021, the Centre may announce a 3 per cent DA hike soon.

If the Centre approves this, then the total DA of Central government employees will go up to 31 per cent, and along with this, there will be a considerable increase in their salary. The current DA of the Central employee is 28 per cent, which was increased recently by the Centre.

Not just this, over 1 crore Central government employees and pensioners will receive increased DA in the salary of September. Along with their salary, they will also receive three instalments of DA.

Recently, the Centre hiked the HRA (House Rent Allowance) of the employees to 27 per cent. The HRA has been increased by 1-3 per cent for different categories. For 'X' class cities, the HRA will be 27 per cent of the basic pay. Whereas, for 'Y' class cities, it will be 18 per cent and 9 per cent for 'Z' class cities. The Central government employees will receive the hiked HRA from August onwards.

For unversed, 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.

As per the rules issued by the Department of Expenditure, once the DA exceeds the 25 per cent mark, then HRA must be revised. Since July 1, Dearness Allowance has increased to 28 per cent, so it was necessary to revise HRA.

Posted By: Niharika Sanjeeiv