The central government's HRA was last updated in July of last year, after the DA passed the 25% barrier. The DA had been raised to 28% at the time by the government. HRA is expected to be revised as DA is raised to new levels
HRA is paid at a rate of 27% to central employees who fall into the X category. HRA for employees in the Y group will range from 18% to 20%. At the same time, the Z class's HRA will rise from 9% to 10%.
According to reports in the media, government employees' HRA could rise by up to 3% in the near future. Employees in X Class cities might see their HRA rise by 3%, while those in Y Class cities could see their allowance rise by 2%.
Further, employees located in Z class cities could receive a 1% hike in HRA. So, In the best-case scenario, the HRA of government employees will increase from 27 per cent to 30 per cent.