Great news for Central Government Employees! The Centre has approved an increase of housing and dearness allowances of its employees. The DA has been increased to 28% from the earlier 17%. The house allowance has also been hiked to 27%.
However, the HRA will differ from city to city and will be calculated as per the cost of living in each city. The cities have been classified into 3 categories viz – X, Y, and Z. The revised HRA for employees in the X category of the city will be revised to 27% of their basic pay, whereas the HRA of the inhabitants of Y city will be 18% of their basic pay.