House Rent Allowance
HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities. As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than ₹5400, ₹3600 and ₹1800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of ₹18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.
7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA.
“House Rent Allowance for Central Government Employees: HRA is a compensation for expenses in connection with the rent of the residential accommodation to be hired/leased by the employee and is graded based on the level of the employee”
HRA paid from 2008 @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities as per 6th CPC Recommendations. Now, 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.
|7th CPC HRA Rates w.e.f. 1.7.2017|
|City Classification||HRA Rates|
|‘X’ Cities||24% of Basic Pay|
|‘Y’ Cities||16% of Basic Pay|
|‘Z’ Cities||8% of Basic Pay|
- The rates of HRA will not be less than Rs.5400/-, 3600/- & 1800/- at X, Y & Z class cities respectively.
- The rates of HRA will be revised to 27%, 18% and 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) corsses 25 percent and further revised to 30%, 20% and 10% when DA corsses 50%.
- Special orders on continuance of HRA at Delhi ‘X’ class city) rates to Central Government employees posted at Faridabad, Ghaziabad, Noida and Gurgaon, at Jalandhar (‘Y’ class city) rates to Jalandhar Cantt. at “Y” class city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh (‘Y’ class city) to Panchkula, S.A.S. Nagar(Mohali)
- The allowances relating to CILQ. FAA and SNLQ henceforth stand abolished as a separate allowance. Eligible employees to be governed by the newly proposed provisions for Housing for Personnel Below Officers Rank (PBORs)
NPA & MSP: Add-ons like NPA, MSP, etc. should not be included while working out HRA [Para 8.7.16 of 7th CPC Report]
HRA Calculation with minimum pay of all levels in Pay Matrix