Will the HRA rise for Central government employees in July 2020?

The central government released the following Order On 23rd April 2020

Directed to say that in view of the crisis arising out of COVID-19, it has been decided that additional instalment of Dearness Allowance payable to central government employees and Dearness relief to central government pensioners, due from 1st January 2020  shall not be paid. The additional instalments of Dearness Allowance and dearness relief due from 1st July 2020 and 1st January 2021 shall also not be paid.[ see order]

The impact of this order leads unhappy among Central government employees. Coming July, Government Employees are expecting two important things:

* Annual Increment
* Increase the rate of HRA

Chances to Increase in HRA rate?

Union Ministry released an order regarding House rent allowance on 7th July 2017. In that, they suggested 24%,16%,8% for X, Y, Z category of cities respectively. Therefore the Government decided that HRA shall not be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z category of cities respectively. In addition, the rates of HRA will be revised upwards to 27%, 18% and 9% for X, Y, Z category of cities respectively, when DA crosses 25% and further revised to 30%, 20% & 10% when DA crosses 50%.

The Dearness Allowance rate is 23.92 at present(April). If AICPIN for the month of MAY and JUNE increased by 3 points continuously, DA may also increase above 25%. In this regard, Central government employees believe that HRA will be revised upwards to 27%, 18% and 9% for X, Y, Z category of cities.

Read at Govtempdiary

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