7th Pay Commission: government employee salary increase from this month, Here is the full calculation

7th pay commission: This is an important update for central government employees. New Year 2024 brings many good news for central government employees. Employees will get a huge increase in salary this year. Apart from the increase in dearness allowance which the employees are waiting for, there will also be an increase in other allowances. Due to these there will be a good increase in the overall salary.

Increase in Dearness Allowances:

31 January 2024 Central Government employees will get clarity on basic data for dearness allowance increase. On this date, the AICPI index numbers for the month of December will be out. After this, it will be clear how much the cess will increase from January. Based on the AICPI data till November, it is clear that the DA this time will reach at least 50 percent.

AICPI Index:

Twice in a year the rate of gratuity is increased. The increase in the rate of pension in January is calculated based on the AICPI index from July to December of the previous year. The gratuity rate for the month of July is calculated based on the AICPI index from January to June. At present, central government employees are getting 46 percent gratuity. It is expected to increase to 50 percent or 51 percent from January.

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The announcement of DA hike is likely to be announced in March 2024. Meanwhile there is another good news for the employees. After January 31 another allowance for central government employees will be increased by 3%.

House rent allowance will increase 3% increase:

Dearness Allowances of central employees will soon increase to 50%. Along with Dearness Allowances, another allowance of central employees will also increase. House rent allowance will also increase. Based on the recommendations of the 7th Pay Commission, the central government has framed rules to increase it.

Increase in HRA:

The next revision in House Rent Allowance will be 3 percent. The maximum rate of HRA is 27%. After the revision, the maximum HRA rate will increase to 30 percent. This happens only if DA increases by 50%. That means as per the memorandum, HRA will be 30%, 20% and 10%. House rent allowance is given on X, Y and Z category basis.

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How to calculate HRA:

As per 7th pay matrix, employees living in rented accommodation will get HRA benefit. HRA amount varies from city to city. For example, an employee residing in Tier-1 cities will get higher HRA than an employee residing in Tier-2 or Tier-3 cities.