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%).
Check HRA Status as per Your Pay Matrix Level – HRA Online Calculator
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 the 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 percent of Basic Pay
- Y Class Cities: 16 percent of Basic Pay
- Z Class Cities: 8 percent of Basic Pay
Indian cities are classified according to the population for the purpose of House Rent Allowance (HRA) to Central Government Employees:
- X Class Cities (Above 50 Lakh Population): 24% of Basic Salary
- Y Class Cities (5 to 50 Lakh Population): 16% of Basic Salary
- Z Class Cities (Below 5 Lakh Population): 8% of Basic Salary
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 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 Pay Commission New HRA Table
| 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.
Also check: 7th Pay Commission Allowances PDF Download
Classification of Cities for HRA after 7th Pay Commission
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.
State-wise List of X Y Z Class Cities in India – Central Govt House Rent Allowance (HRA)
Andhra Pradesh & Telangana
Classified ‘X’ City (24% HRA)
- Hyderabad (UA)
Classified ‘Y’ Cities (16% HRA)
- Vijayawada (UA)
- Warangal (UA)
- Greater Visakahapatnam (M.Corpn.)
- Guntur (UA)
- Nellore (UA)
Assam
Classified ‘Y’ City (16% HRA)
- Guwahati (UA)
Bihar
Classified ‘Y’ City (16% HRA)
- Patna (UA)
Chandigarh
Classified ‘Y’ Cities (16% HRA)
- Chandigarh (UA)
- S.A.S. Nagar, Mohali*
Chhattisgarh
Classified ‘Y’ Cities (16% HRA)
- Durg-Bhilai Nagar (UA)
- Raipur (UA)
Delhi
Classified ‘X’ Cities (24% HRA)
- Delhi(UA)
Gujarat
Classified ‘X’ Cities (24% HRA)
- Ahmadabad (UA)
- Classified ‘Y’ Cities (16% HRA)
- Rajkot (UA)
- Jamnagar (UA)
- Bhavnagar (UA)
- Vadodara (UA)
- Surat (UA)
Haryana
Classified ‘Y’ Cities (16% HRA)
- Faridabad* (M.Corpn.)
- Gurgaon* (UA)
Jammu & Kashmir
Classified ‘Y’ Cities (16% HRA)
- Srinagar (UA)
- Jammu(UA)
Jharkhand
Classified ‘Y’ Cities (16% HRA)
- Jamshedpur (UA)
- Dhanbad (UA)
- Ranchi (UA)
- Bokaro Steel City (UA)
Karnataka
Classified ‘X’ Cities (24% HRA)
- Bangalore / Bengaluru (UA)
Classified ‘Y’ Cities (16% HRA)
- Belgaum (UA)
- Hubli-Dharwad (M.Corpn.)
- Mangalore (UA)
- Mysore (UA)
- Gulbarga (UA)
Kerala
Classified ‘Y’ Cities (16% HRA)
- Kozhikode (UA)
- Kochi (UA)
- Thiruvananthapuram (UA)
- Thrissur (UA)
- Malappuram (UA)
- Kannur (UA)
- Kollam (UA)
Madhya Pradesh
Classified ‘Y’ Cities (16% HRA)
- Gwalior (UA)
- Indore (UA)
- Bhopal (UA)
- Jabalpur (UA)
- Ujjain (M.Corpn.)
Maharashtra
Classified ‘X’ Cities (24% HRA)
- Greater Mumbai (UA)
- Pune (UA)
Classified ‘Y’ Cities (16% HRA)
- Amravati (M.Corpn.)
- Nagpur (UA)
- Aurangabad (UA)
- Nashik (UA)
- Bhiwandi (UA)
- Solapur (M.Corpn.)
- Kolhapur (UA)
- Vasai–Virar City (M.Corpn.)
- Malegaon (UA)
Nanded-Vaghela (M.Corpn.)
Sangli (UA)
Odisha
Classified ‘Y’ Cities (16% HRA)
- Cuttack (UA)
- Bhubaneswar (UA)
- Raurkela (UA)
Puducherry (Pondicherry)
Classified ‘Y’ Cities (16% HRA)
- Puducherry / Pondicherry (UA)
Punjab
Classified ‘Y’ Cities (16% HRA)
- Amritsar (UA)
- Jalandhar (UA)
- Ludhiana (M.Coprn.)
Rajasthan
Classified ‘Y’ Cities (16% HRA)
- Bikaner (M.Corpn.)
- Jaipur (M.Corpn.)
- Jodhpur (UA)
- Kota (M.Corpn.)
- Ajmer (UA)
Tamil Nadu
Classified ‘X’ Cities (24% HRA)
- Chennai (UA)
- Classified ‘Y’ Cities (16% HRA)
- Salem (UA)
- Tiruppur (UA)
- Coimbatore (UA)
- Tiruchirappalli (UA)
- Madurai (UA)
- Erode (UA)
Uttar Pradesh
Classified ‘Y’ Cities (16% HRA)
- Moradabad (M.Corpn.)
- Meerut (UA)
- Ghaziabad* (UA)
- Aligarh (UA)
- Agra (UA)
- Bareilly (UA)
- Lucknow (UA)
- Kanpur (UA)
- Allahabad (UA)
- Gorakhpur (UA)
- Varanasi (UA)
- Saharanpur (M.Corpn.)
- Nodia* (CT)
- Firozabad (NPP)
- Jhansi (UA)
Uttarakhand
Classified ‘Y’ Cities (16% HRA)
- Dehradun (UA)
West Bengal
Classified ‘X’ Cities (24% HRA)
- Kolkata (UA)
Classified ‘Y’ Cities (16% HRA)
- Asansol (UA)
- Siliguri(UA)
- Durgapur (UA)
Note:
- S.A.S. Nagar, Mohali: Special sanction at par with Chandigarh
- Faridabad, Gurgaon, Ghaziabad, Noida: Base on dependency only for HRA
- Saharanpur: Classified as Y class with effect from June 2011
Which are classified Z cities in India?
Initially, the cities were classified as A B C and then categorized as X, Y, and Z. The remaining cities and towns in India which are not covered by classification as X or Y are classified as Z class cities for the purpose of HRA to Central Government employees.
Also read: HRA Finmin Order 2017 PDF Download
HRA Exemption from Income Tax
HRA Exemption Calculation and Calculator
A salaried employee can avail of the benefit of exemption from Income 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
7th CPC HRA Latest News Today
- Classification of Cities for House Rent Allowance to CG Employees 2020 February 27, 2020
- No Accommodation Certificate (NAC) for HRA February 14, 2020
- Grant of HRA to the employees who have vacated Government Quarters in Railways and Defence September 30, 2019
- 7th Pay Commission HRA to PBOR of CAPF and Assam Rifles September 27, 2019
- Calculation of HRA – Only Pay in the Pay Matrix August 27, 2019
- 7th CPC HRA to Haryana Government Employees July 23, 2019
- 7th Pay Commission HRA – Re-classification of Cities/Towns on the basis of Census-2011 July 16, 2019
- 7th Pay Commission: Rate of House Rent Allowance June 27, 2019
- 7th Pay Commission HRA to Personnel Below Officer Rank (PBOR) June 13, 2019
- ‘No Accommodation Certificate’ by Employees to become eligible for HRA April 4, 2019
- Finmin Clarification on House Rent Allowance Dated 5.3.2019 March 5, 2019
- Rent and Allied Charges in Respect of Indian Army Officers February 21, 2019
- 7th CPC Fitment and HRA – No Change Therein is Envisaged December 20, 2018
- 7th CPC House Building Advance – Loan Migration – CGDA November 20, 2018
- 7th CPC Allowances: Abolition of Rent Free Accommodation Allowance November 9, 2018
- Additional HRA to Railway employees – RBE No.153/2018 October 11, 2018
- Grant of Additional House Rent Allowance to CG Employees – Finmin Order 14.8.2018 August 15, 2018
- Admissibility of HRA in the Event of Non-Acceptance or Surrender of Railway Residential Accommodation January 26, 2018
- House Rent Allowance (HRA) to Armed Forces Personnel – MoD Orders dt. 11.10.2017 December 20, 2017
- Admissibility of HRA during Study Leave December 14, 2017
- House Rent Allowance to Defence Personnel December 14, 2017
- HRA Income Tax Exemption Calculator for Govt Employees November 24, 2017
- Additional House Rent Allowance (HRA) for Railway Employees November 17, 2017
- House Rent Allowance (HRA) : Report of the Committee on Allowances October 24, 2017
- 7th CPC HRA – Revised Rates for TN Govt Employees October 12, 2017
- 7th CPC House Rent Allowance – Finance Ministry issued orders with Classification of Cities July 8, 2017
- Minimum HRA Calculation will benefit only few thousand employees – Confederation July 6, 2017
- 7th CPC HRA Enhanced Pay Scales with Profit for 3 Levels July 6, 2017
- Date of implementation of the allowances has created lot of anguish and serious discontentment in the CG Employees – NC JCM Secretary writes to Cabinet Secretary July 3, 2017
- 7th CPC HRA Calculator as per Cabinet Decision June 29, 2017
- Enhanced HRA benefit only 15 Slabs for lower levels June 29, 2017
- Cabinet approval on 7th CPC House Rent Allowance June 28, 2017
- Grant of House Rent Allowance (HRA) to Railway employees May 12, 2017
- Issue of Admissibility of HRA – Railway Board Orders March 17, 2017
- 7th CPC Expected HRA and Arrears Calculator 2017 March 2, 2017
- Arrears on Allowances including HRA and Transport Allowance is going to be rejected – Confederation February 17, 2017
- Grant of House Rent Allowances at Chandigarh rates to Central Government Employees Posted at S.A.S. Nagar Mohali February 6, 2017
- Admissibility of HRA in case of residing in Govt. Guest House / Transit Facility January 9, 2017
- Demonetization versus Seventh Pay Commission: Tax-paying government servants among the worst hit! January 7, 2017
- Central Staff are not yet given the full Benefit of 7th CPC Recommendation January 5, 2017
- HRA should be paid @ 35, 25 and 15% of pay – BPMS November 26, 2016
- Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – NFIR November 8, 2016
- Percentage of HRA in 7th pay commission after cabinet approval June 30, 2016
- Grant of HRA at a higher rate (“B” Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding March 16, 2016
- House Rent Paid : 80GG has also been raised to 60,000 from 24,000 March 1, 2016
- Railway Board decision on House Rent Allowance – Orders Issued February 21, 2016
- Analysis and Recommendations of 7th Pay Commission on House Rent Allowance December 17, 2015
- 7th CPC recommendations to reduce House Rent Allowance November 22, 2015
- House Rent Allowance as per Census 2011 to Railway Employees – Orders issued October 2, 2015
- Grant of 30% House Rent Allowance to employees working Umdanagar, Medchal and Gundlapochampally September 21, 2015
- 7th Pay Commission proposes to increase House Rent Allowance of Central Government employees September 14, 2015
- Revision of House Rent Allowance for CPSE employees on the basis of Census – 2011 September 11, 2015
- Re-classification of Cities/Towns for the purpose of HRA – Dopt Orders August 5, 2015
- Finance Ministry issued orders on upgradation of cities / towns on the basis of Census 2011 for the purpose of House Rent Allowance July 22, 2015
- NC JCM writes to Finance Ministry to grant 30 percent HRA for Medak (Yeddumailaram) Employees July 15, 2015
- Hike in House Rent Allowance for Bank Employees as per 2011 Census July 7, 2015
- Based on the Census of 2011 HRA and TA increased for Central Government employees June 5, 2015
- Revision of classification cities for the purpose of House Rent Allowance and Transport Allowance to Central Government employees May 31, 2015
- 43% salary increase for all categories of employees in Andhra Pradesh February 11, 2015
- Grant of HRA to CG Employees on Transfer from one station to another station – MoD orders October 22, 2014
- Retirement Age from 58 to 60 – Retirement Age hike in Andhra Pradesh June 26, 2014
- NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE June 25, 2014
- Demand to calculate House Rent Allowance based on Census 2011 should gain prominence..! May 20, 2014
Simple Online HRA Calculator for CG Employees after 7th CPC: Click the below link and check your HRA Amount with the percentage
House Rent Allowance (HRA) Online calculator
List of Latest Salary and DA Calculator for CG Employees:
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I am a deputationist from State govt to Central govt posted in North East. My colleague’s from Delhi are getting double HRA but recently my single HRA is curtailed on the ground that I should shift to a government quarter which I am reluctant as because it will be hectic to shift my family. I am having another year to complete my tenure.
Greater Noida in UP which class in HRA for Central government Employee
If an employee is on temporary deputation and not having any residence at the place of his head quarter whether such employee is entitled for hra @ of his head quarter or place of deputation
Since he has got the addition deputation allowance & also temporary deputation he is entitled as per the Headquarters HRA.
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%