How Is The New Central Government Salary Raise Designed?

 How Is The New Central Government Salary Raise Designed?

After much waiting, there is good news for all the Central government employees. There is a Central government salary raise of 28% above their basic salary. Along with that, the Indian Government has also increased the HRA (House Rent Allowance) for pensioners and employees. The employees of the central government will see this coming in their September salary. This was decided on the 7th pay commission. Let us have a look at the 7th pay commission latest news today 2021. 

The HRA for the employees of the central government was increased as a result of the DA crossing the 25% mark. As a result of that, the HRA has presently increased to 27%. On 7th July 2017, the Department of Expenditure published an order which stated that when the DA will cross 25%, there will also be a revision of the House Rent Allowance. Since 1 July, the Dearness Allowance (DA) has been raised to 28% which made the raise of HRA compulsory as well. 

As per the latest orders for the central government employees issued by the Indian government, after the Central government salary raise, the HRA of these employees is segregated into three categories, which is as the cities that are labeled X, Y, and Z. According to this, the HRA for the employees in the cities under the X categorization will receive 27% of their basic pay. For employees residing in city Y, the government is offering them an 18% HRA against their basic pay. Likewise, for those residing in city Z, the HRA that they will be receiving is 9% above their basic pay package. 

Based on the analysis that was made on the 7th pay Commission table, the minimum base salary for the central government employees is around Rs 18,000. On this basic salary every month, the employees were receiving DA of Rs 3,0060 till June 2021. DA for Central government employees from July 2020 was this. This amount has been translated to 17% DA. Since 2021 July, the employees of the Central government have witnessed a hike on that as they get Rs 5,040 every month according to the DA regulations of 28%. This implies that there is mainly an increment of nearly Rs 1,980 in the employee’s monthly salary.  There are no further details about the 8th Pay Commission. 

The Bottom Line

There is one thing that should be noted in this Central government salary raise, that it was predicted before that the government would announce an added 3% increase in the DR (Dearness Relief) and DA coming October. However, these reports are not confirmed yet, as there has not been any clear documented evidence from the government’s side confirming the case. But as soon as we get any confirmation, this article will be updated accordingly. In the event, if it does take place the government employees can see their DA increased to an astonishing 31%. 

Frequently Asked Questions On Central Government Salary Raise

1. Will the HRA increase in 2021?

The HRA for the employees of the central government was increased as a result of the DA crossing the 25% mark. As a result of that, the HRA has presently increased to 27%.

2. Will DA increase in July 2021?

On this basic salary every month, the employees were receiving DA of Rs 3,0060 till June 2021. DA for Central government employees from July 2020 was this. This amount has been translated to 17% DA. Since 2021 July, the employees of the Central government have witnessed a hike on that as they get Rs 5,040 every month according to the DA regulations of 28%.

3. Is there any good news for central govt employees?

In the event, if it does take place there is good news for the Central government employees: the government employees can see their DA increased to an astonishing 31%.

Andrey Ivanov

Andrey Ivanov is a business and finance expert. He has analyzed the finance and business market closely and writes all his articles with utmost precision.

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