7th pay commission latest news: As a festive season of Holi approaches, the Central Government has taken a huge decision which is going to benefit many government employees reaping the benefit of 7th pay commission. In a single stroke, this decision has increased the HRA (House Rent Allowance) of many Central Government employees by 100 per cent. Yes! The HRA has been doubled for many Central Government employees.
As per the Central Government order, the Uttar Pradesh Government has upgraded Mathura and Vrindavan from Z to Y category. This means that these two cities will now fall under an altogether new category. This decision has brought in a major change.
Normally, Central Government employees posted in X category of cities get maximum House Rent Allowance (HRA) of 24 per cent of their basic salary.
Z category government employees get HRA that is up to 8 per cent of their basic salary and Central Government employees posted in Y category cities get 16 per cent of their basic salary as HRA.
Now since Mathura and Vrindavan have been upgraded from Z category to Y, Central Government employees there will get 16 per cent of their Basic Salary as HRA instead of 8 per cent. That means there is an increase of 100 per cent in their HRA, that is, the HRA has been doubled.
A city having a population of up to 5 lakh falls in Z category while a city having a population of above 5 lakh but below 50 lakh falls in Y category.
100 per cent increase in HRA is going to benefit armed forces and para-military forces as well.