After the recent rise in Dearness Allowance (DA), there’s more good news for Central government employees. A report from OneIndia.com indicates that the House Rent Allowance (HRA) is likely to be increased soon.
Recent DA Hike and Expected HRA Allowance
Thanks to the recent increase in Dearness Allowance (DA), Central government employees are enjoying extra funds for the festivities. They’ve received Gratuity, Diwali bonuses, and DA arrears in their accounts. And the good news keeps coming—a significant salary boost is on the horizon as a special New Year’s gift.
In 2024, central government employees can expect their salaries to go up again. Currently, the Dearness Allowance (DA) is at 46 percent, based on the All India Consumer Price Index (AICPI) for July, August, and September. The latest AICPI index data, reaching 48.54 percent at 137.5 points, suggests a likely increase of 4-5 percent in DA in the coming months.
Travel Allowance and HRA Expected to Increase
Following the recent increase in Dearness Allowance (DA), there’s a chance that travel allowances for central government employees might go up too, since they’re linked. In the bigger TPTA cities, Grade 1 to 2 employees may get Rs 1800 and Rs 1900, while Grade 3 to 8 employees could expect Rs 3600 + DA. In other cities, the rate is Rs 1800 + DA.
Apart from the recent financial boosts, there’s news that House Rent Allowance (HRA) is set for a revision next year, with an expected increase of around 3 percent. If the trend continues, HRA adjusts when DA goes beyond 50 percent. Currently, the rates are 27, 24, and 18 percent for X, Y, Z category cities. The proposed HRA hike could push these rates to 30, 27, and 21 percent, respectively, once the 50 percent threshold is crossed.
Changes are expected in March 2024 when the House Rent Allowance (HRA) for central government employees is revised, with a likely increase of 3 percent. Usually, HRA gets adjusted when the Dearness Allowance (DA) goes beyond 50 percent. Currently, HRA rates are 27, 24, and 18 percent for X, Y, Z cities. If DA crosses the 50 percent mark, HRA may rise to 30, 27, and 21 percent, bringing good news for the employees.