House Rent Allowance or HRA is one of the major salary elements for Central Government employees. The 6th CPC recommended 10 percent of basic salary (Pay) for the employees working in other cities. And now the 7th pay commission recommended 8% of matrix pay for other cities. But the minimum amount of HRA is Rs. 1,800 (The minimum basic pay is Rs. 18,000 and the minimum HRA is equal to 10%).
7th CPC House Rent Allowance for Central Government Employees
The Government of India issued an important order regarding the rates and entitlements of House Rent Allowance for Central Government employees on 7.7.2017 as per the decision on 7th pay commission report. The new revised rates (percentage) of HRA as per city classification with effect from 1st July 2017 as follows…
- X Class Cities: 24 % of Basic Pay
- Y Class Cities: 16 % of Basic Pay
- Z Class Cities: 8 % of Basic Pay
Who is not entitled to HRA?
The employees who are residing in government accommodation are not an entitlement to HRA.
What is the meaning of Basic Pay?
The word of Basic Pay is used in the calculation purpose of HRA, does not include any type of pay like special pay, Non-Practising Allowance (NPA), Military Service Pay (MSP), etc.
Minimum HRA Rs. 1,800 at the rate of 10%
The revised rates of HRA will not be less than Rs.5400 for X Class cities, Rs. 3600 for Y Class cities and Rs. 1800 for Z class cities. The below table denotes the minimum amount of HRA for pay level 1, pay level 2 and for pay level 3.
HRA Calculation with minimum pay of all levels in Pay Matrix
| Pay Matrix Level | Minimum Basic Salary (Pay) | HRA 24 % | HRA 16 % | HRA 8 % |
| Pay Level 1 | Rs. 18000 | Rs. 5400 | Rs. 3600 | Rs. 1800 |
| Pay Level 2 | Rs. 19900 | Rs. 5400 | Rs. 3600 | Rs. 1800 |
| Pay Level 3 | Rs. 21700 | Rs. 5400 | Rs. 3600 | Rs. 1800 |
More than 7 lakh employees are benefiting due to the enhancement of minimum HRA and the table shows the basic pay in the pay level of 1, pay level 2 and pay level 3.
| 7th CPC Pay Matrix Level 1 (Grade Pay 1800) | ||||
| Index | Basic Pay | HRA 8% (Z Class Cities) | HRA 16% (Y Class Cities) | HRA 24% (X Class Cities) |
| 1 | Rs. 18000 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 2 | Rs. 18500 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 3 | Rs. 19100 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 4 | Rs. 19700 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 5 | Rs. 20300 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 6 | Rs. 20900 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 7 | Rs. 21500 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 8 | Rs. 22100 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 7th CPC Pay Matrix Level 2 (Grade Pay 1900) | ||||
| Index | Basic Pay | HRA 8% (Z Class Cities) | HRA 16% (Y Class Cities) | HRA 24% (X Class Cities) |
| 1 | Rs. 19900 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 2 | Rs. 20500 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 3 | Rs. 21100 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 4 | Rs. 21700 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 5 | Rs. 22400 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 7th CPC Pay Matrix Level 3 (Grade Pay 2000) | ||||
| Index | Basic Pay | HRA 8% (Z Class Cities) | HRA 16% (Y Class Cities) | HRA 24% (X Class Cities) |
| 1 | Rs. 21700 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
| 2 | Rs. 22400 | Rs. 1800 | Rs. 3600 | Rs. 5400 |
HRA will be revised to 30%, 20% & 10%
The rates of HRA will be revised to 27%, 18% and 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) crosses 25 percent and further revised to 30%, 20% and 10% when DA crosses 50%.
Eligibility of HRA
The House Rent Allowance is admissible with reference to the place of office or duty. And it is not referenced with the residence of the employee.
House Rent Allowance (HRA) is a compensation for expenses in connection with the rent of the residential accommodation to be hired or leased by the employee and is graded based on the level of the employee.
Classification of Cities for HRA
Indian cities are classified as three categories (X Cities, Y Cities and Z Cities) for the purpose of House Rent Allowance as per the population record. The ‘X’ Class and ‘Y” Class cities and towns are denoting in the below table as State wise and the other cities are under ‘Z’ Class.
| Classified ‘X’ Cities (24% HRA) | Classified ‘Y’ Cities (16% HRA) |
| 1. Andaman & Nicobar Islands | |
| · – | · – |
| 2. Andhra Pradesh & Telangana | |
|
|
| 3. Arunachal Pradesh | |
| – | – |
| 4. Assam | |
| – |
|
| 5. Bihar | |
| – |
|
| 6. Chandigarh | |
| – |
|
| 7. Chhattisgarh | |
| – |
|
| 8. Dadra & Nagar Haveli | |
| – | – |
| 9. Daman & Diu | |
| – | – |
| 10. Delhi | |
|
– |
| 11. Goa | |
| – | – |
| 12. Gujarat | |
|
|
| 13. Haryana | |
| – |
|
| 14. Himachal Pradesh | |
| – | – |
| 15. Jammu & Kashmir | |
| – |
|
| 16. Jharkhand | |
| – |
|
| 17. Karnataka | |
|
|
| 18. Kerala | |
| – |
|
| 19. Lakshadweep | |
| – | – |
| 20. Madhya Pradesh | |
| – |
|
| 21. Maharashtra | |
|
|
| 22. Manipur | |
| – | – |
| 23. Meghalaya | |
| – | – |
| 24. Mizoram | |
| – | – |
| 25. Nagaland | |
| – | – |
| 26. Odisha | |
| – |
|
| 27. Puducherry (Pondicherry) | |
| – |
|
| 28. Punjab | |
| – |
|
| 29. Rajasthan | |
| – |
|
| 30. Sikkim | |
| – | – |
| 31. Tamil Nadu | |
| Chennai (UA) |
|
| 32. Tripura | |
| – | – |
| 33. Uttar Pradesh | |
| – |
|
| 34. Uttarakhand | |
| – |
|
| 35. West Bengal | |
|
|
HRA Exemption from Income Tax
HRA Exemption Calculation and Calculator
A salaried employee can avail the benefit of exemption from Incoem Tax from his HRA (House Rent Allowance). As per the Income Tax Rules 10(13A) & Rule 2A House Rent Allowance least of the following is exempt:
- Actual HRA received in their salary slip
- 40% of Salary (Basic Pay + DA) for Non Metros
- 50% of Salary (Basic Pay + DA) for Metros (Mumbai, Calcutta, Delhi, Chennai)
- Rent paid minus 10% of salary
If an employee is living in his own house or he does not pay any rent, he is not eligible for the above said exemption on HRA. Click to calculate your HRA with our simple calculator.
NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE
Important Government orders regarding HRA
- House Rent Allowance (HRA) to Armed Forces Personnel – MoD Orders dt. 11.10.2017
- Finance Ministry Orders on 7th CPC House Rent Allowance – 7.7.2017
- HRA Classification of Cities – Class X, Y and Z cities
- House Rent Allowance (HRA) : Report of the Committee on Allowances
- Additional HRA for NER, A&N, Lakshadweep and Ladakh
- Admissibility of HRA during Study Leave
- HRA Enhanced Pay Scales with Profit for 3 Levels
- 7th CPC HRA Calculator as per Cabinet Decision
7th Pay Commission Other Topics
- 7th Pay Commission Pay Scale Calculator
- 7th Pay Commission Salary Calculator 2019
- 7th Pay Commission Pay Fixation Calculator
- 7th Pay Commission DA Rates Table
- 7th Pay Commission Pay Fixation
- 7th Pay Commission MACP Scheme
- 7th Pay Commission Children Education Allowance
- 7th Pay Commission Transport Allowance
- 7th Pay Commission Increment
- 7th Pay Commission House Rent Allowance
- 7th Pay Commission Classification of Posts
- 7th Pay Commission LTC Rules
- 7th Pay Commission Leave Rules
- 7th Pay Commission Travelling Allowance
- 7th Pay Commission House Building Advance
- 7th Pay Commission Allowances
- 7th Pay Commission Fitment Table
- 7th Pay Commission Advances
- 7th Pay Commission CGEGIS
- 7th Pay Commission Risk & Hardship Allowances
I am ashok kumar garg posted in bsnl employees of dot now my basic 23800 i get hra 800 by officer i talk tomany time my officer but they not listen me
Please provide details of greater Mumbai area?
It is Thane city included in greater mumbai region please reply early
I m officer of CRPF my HQ is bilaspur madhya parades and I m performing duty in Assam my family reside at JODHPUR Rajasthan then can I entitle for HRA. If yes then which place
Will an employee get HRA while proceeding abroad with her husband on six months EL and one year EOL
I am central govt employee, working in Belgaum(Karnataka) but my family is staying in Bangalore, I want know that I can claim Bangalore HRA. Pl intimate.
Sir,
I belongs to Lucknow Central Govt employee. what is HRA applicable for Lucknow city in 7th pay commission.
Y city, 16%