The Narendra Modi-led Central government brought cheers to lakhs of employees before Diwali and another good news is in store ahead of New Year. If reports are anything to go by, the Finance Ministry is considering implementation of House Rent Allowance (HRA) for over 11 lakh employees from January 1, 2021.
The Ministry has already sent a proposal in this regard to the Railway Board for approval.
As per the media reports, the proposal to implement the HRA from January 2021 was made by the Indian Railways Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR).
Once it is accepted, the HRA of employees will increase and they will get arrears too. Also, when the dearness allowance is raised, it will subsequently increase the HRA and Transport Allowance (TA) of the employees.
As per reports, the increase in salary will be different for the employees as per the pay scale under the 7th Central Pay Commission (CPC). The 7th Pay Commission, in its recommendations, had earlier proposed to increase HRA when the DA crosses 25 percent. The rate will rise from 8, 16, 24 percent to 9, 18, and 27 percent respectively.
The employees are likely to benefit in the range of Rs 5400 to Rs 8100 per month. However, the minimum HRA has been fixed at Rs 5400 per month.