HRA July 2020
On 23 April 2020 the Central Government issued the following order:
Directed to say that, in view of the COVID-19 crisis, it was decided that no additional installment of the Dearness Allowance payable to central government employees and Dearness relief to central government pensioners due from 1 January 2020 will be paid. Also the additional instalments of the Dearness Allowance and Dearness relief due from 1 July 2020 and 1 January 2021 are not to be paid.
Check the order: Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates till July 2021
The effect of this order is leading to unhappiness among Central Government workers. Government Employees expect two important things to come in July:
- Annual Increment
- Increase the rate of HRA
Chances of HRA-rate increase?
On 7 July 2017, the Union Ministry issued an order relating to the rent allowance for the House. In that, they suggested 24%, 16%, 8% respectively for cities category X, Y, Z. The government has therefore decided that HRA will be no less than Rs 5400, Rs 3600 and Rs 1800 for cities categories X , Y and Z respectively. In addition, HRA rates will be revised up to 27%, 18% and 9% respectively for city categories X, Y , Z, when DA crosses 25% and further revised to 30%, 20% and 10% when DA crosses 50%.
Currently the Dearness Allowance is 23.92 (April). If AICPIN increases continuously by 3 points for the month of MAY and JUNE, DA may also increase above 25 percent. In this regard, employees of the central government believe that HRA will be revised up to 27%, 18% and 9% for cities category X, Y, Z.
| Classification of Cities/Towns | Rate of House Rent Allowance per month as a percentage of Basic Pay only |
| X | 24% |
| Y | 16% |
| Z | 8% |
Also check: Holidays to be observed in Central Government Offices during the year 2021
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Syam sundar says
Chances of crossing 25 percent are remote and even DA is 25 percent, we could expect increase in hra only in 2021 January as hike in hra be effected only Da is 26 percent.
Johi says
Yes ur right bro
cheeha says
There is a fair chance to become 25% DA w.e.f. 1.7.2020, for CG employees and pensioners, if the inflationary trend continues the same. As per Govt recommendation and decision, Whenever DA reaches by 25% level, the DA indexed allowances like HRA will be increased by 3% more in addition to Annual Increment for some employees, whose increment falls on 1.7.2020. .
The House rent Allowance is now paid at the rate of 24%, 16% and 8% for X,Y and Z cities. HRA shall be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crosses 25%
The 7th Pay Commission had revised the HRA to 24%, 16% and 8% for X, Y and Z category cities respectively. Also it has recommended to increase the HRA percentage to 27%, 18% and 9% when DA reaches 50% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 100%.
Hope for the best . Be positive for HRA increase from October,2020 onwards for c g employees.
The recommendations of the 7thCPC was accepted by the Allowance Committee with the following modifications:
(i) HRA shall not be less than Rs.5,400 per month, Rs.3,600 per month and Rs.1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities.
cheeha says
There is a fair chance to become 25% DA w.e.f. 1.7.2020, for CG employees and pensioners, if the inflationary trend continues the same. As per Govt recommendation and decision, Whenever DA reaches by 25% level, the DA indexed allowances like HRA will be increased by 3% more in addition to Annual Increment for some employees, whose increment falls on 1.7.2020. .
The House rent Allowance is now paid at the rate of 24%, 16% and 8% for X,Y and Z cities. HRA shall be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crosses 25%
The 7th Pay Commission had revised the HRA to 24%, 16% and 8% for X, Y and Z category cities respectively. Also it has recommended to increase the HRA percentage to 27%, 18% and 9% when DA reaches 50% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 100%.
Hope for the best . Be positive for HRA increase from October,2020 onwards for c g employees.
The recommendations of the 7thCPC was accepted by the Allowance Committee with the following modifications:
(i) HRA shall not be less than Rs.5,400 per month, Rs.3,600 per month and Rs.1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities.
(ii) HRA shall be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 50%.