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Summary
The 8th Pay Commission is considering a comprehensive revision of the House Rent Allowance structure, with proposals including a forty percent hike in HRA and linking it to Dearness Allowance to account for inflation. Employee unions are advocating for revised HRA rates based on city categories and a review of city classifications every five years to reflect changing housing costs. If accepted, these proposals could result in significant changes to the HRA framework, providing additional support for central government employees in managing housing expenses.
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