The festival of Diwali brings joy to all of us. The festival brings families together, we make fond memories to cherish and what not. And it looks like, even though the festival of the year is behind all of us, the good news is not.
Major salary hike for Central Govt. employees in upcoming months
According to recent reports, lakhs of central government employees are expected to receive a major hike in their salaries starting from January 2022. Under the 7th Pay Commission, the salary of the employees will increase due to a hike in the house rent allowance (HRA). For the government employees, HRA is a major part of the salary.
The Finance Ministry has already taken steps in the direction of increasing the salary. If all goes according to the plan, and the Central government approves the proposal, then the government will start crediting the increased HRA starting from January 2022.
With this move, more than 11.56 lakh employees working with Indian Railways are expected to benefit. The Indian Railways Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR) have been demanding the implementation of increased HRA for a long time now.
Increased DA means Increase HRA
It should be noted that the increase in dearness allowance (DA) will cause HRA and Transport Allowance (TA).
In the 7th Pay Commission, salaries of employees increase when the Centre rolls out DA or HRA hike. According to the 7th Pay Commission, HRA is due to increase when the DA reaches above 25% of the basic salary. The HRA will increase in the rate from 8, 16, 24 percent to 9, 18, and 27 percent.
Also, for example, if an employee’s basic pay is Rs 30,000, then the benefit will now stand in a range of about Rs Rs 5400 to Rs 8100 per month. Moreover, the latest updates have been fixed at a minimum of Rs 5400 per month.
It should be noted that the HRA is a crucial salary component paid to employees by an employer towards the accommodation cost of living in that city.
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