7th Pay Commission: Salary of Central government employees may increase again, here's why

7th Pay Commission latest updates: Prime Minister Narendra Modi-led government at the Centre has approved Dearness Allowance (DA) and other allowances for Central government employees this year. After initially approving an increase of 11% in DA, the Centre then approved DA hike of 3%. Besides this, the Central government employees have also received a raise in TA as well as Diwali bonus.

The government has also announced that the Central government employees will also receive the arrears of DA. It is learnt that the goverment is also exploring another allowance and the benefits of this allowance is expected to start in January 2022.
According to reports, the Centre is planning to increase the House Rent Allowance (HRA) of Central government employees and the HRA hike will result in a significant increase in the salary of Central government employees. Reports claimed that the Finance Ministry has started discussions over the implementation of HRA for more than 11.56 lakh employees.

If the Centre approved the plan then the Central government employees will start receiving HRA benefits in January 2021. The National Federation of Railwaymen (NFIR) and the Indian Railway Technical Supervisors Association (IRTSA) have urged the Centre to introduce HRA from January 1, 2021.

It is to be noted that as per the recommendations of 7th Pay Commission, if the DA exceeds 25%, HRA is immediately updated. The modification in HRA has been made on the basis of DA.
The HRA is separated into three categories: X, Y, and Z cities. The employees in the X category will get more than Rs 5400 in HRA per month, a person in the Y class will be paid Rs 3600 per month, while a person in the Z class will be paid Rs 1800 per month.

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