The central government has recently released a scheme for lakhs of government employees and pensioners. Dearness Allowance (DA) and Dearness Relief (DR) to 28 percent of their basic pay at the rate of 17 percent. Now the government is preparing to increase the DA and DR of the employees again. This time the rate can be increased by 3 percent. This means that central government employees and pensioners can soon get DA and DR equal to 31 percent of their basic pay.
The Central Government is now increasing the House Rent Allowance (HRA). Usually, HRA gets increased automatically when DA exceeds 25 percent. Hence, with the revision of DA, HRA is still expected to increase by 3 percent soon. Employees get 27 percent, 18 percent, and 9 percent HRA depending on the category of the city.
HRA is credited to the bank accounts of central government employees on the basis of class of cities – X, Y and Z. Central government employees in the X category will now get HRA more than Rs 5400 per month. Y category and Z category employees will get Rs 3600 per month and Rs 1800 per month as HRA respectively.
Meanwhile, the central government has also increased the limit of family pension from Rs 45,000 to Rs 1.25 lakh. The decision is aimed at bringing “ease of living” to the family members of the deceased employees and providing them adequate financial security.
Apart from this, in June 2020, the central government also announced the House Building Advance (HBA) scheme to provide loans at affordable rates to government employees who are planning to build their own homes. Central government employees can get loans at a 7.9 percent interest rate. In another good news for pensioners, the government has started sharing pension slips directly on the registered details of pensioners through SMS, email, and WhatsApp for the convenience of pensioners.