CG employees to get a double bonus | Fusion - WeRIndia

Good news to central government employees as they will receive a double bonus soon due to the government’s announcement of a hike in Dearness Allowance (DA) and Dearness Relief (DR). As per reports, employees are likely to receive their double bonus this week.

The central government increased the DA for central government employees to 28 per cent from 17 per cent, with effect from July 1, 2021. In addition to that, the government also decided to increase the House Rent Allowance (HRA) from August 1, 2021.

The hike in both DA and HRA will be based on the basic pay of the employees. For instance, if the basic pay of an employee at entry-level is ₹18,000, the employee was getting ₹3,060 at the rate of 17 per cent DA till June; the employee would get ₹5,040 with the hike in DA from July onwards.

Also, if the DA of an employee exceeds 25 per cent of his/her basic pay, then the hike in HRA will be 3 per cent. As per the order of the Department of Expenditure issued in 2017, the HRA will be automatically revised if the DA exceeds 25 per cent of the basic pay of an employee.

Sources claim that employees will receive the revised HRA along with this month’s salary. The hike in HRA will be based on the categories of the cities where they live.

The hike will be 27 per cent for residents of X category cities, 18 per cent for residents of Y category cities and 9 per cent for those residing in Z category cities.

X category cities are those with a population of more than 50 lakhs, and Z category cities have a population of five lakhs. Y category cities are those with a population of more than five lakhs and less than 50 lakhs.

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