House Rent Allowance Calculation from Basic Salary for Central Government Employees
Income Tax Exemption Rules on House Rent Allowance
Rate of HRA after 7th Pay Commission:
“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
7 CPC HRA Calculation Table:
HRA Calculation with minimum pay of all levels in Pay Matrix.
| Pay Matrix | Minimum Pay | 24% | 16% | 8% |
| Level-1 | 18000 | 5400 4320 |
3600 2880 |
1800 1440 |
| Level-2 | 19900 | 5400 4776 |
3600 3184 |
1800 1592 |
| Level-3 | 21700 | 5400 5208 |
3600 3472 |
1800 1736 |
| Level-4 | 25500 | 6120 | 4080 | 2040 |
| Level-5 | 29200 | 7008 | 4672 | 2336 |
| Level-6 | 35400 | 8496 | 5664 | 2832 |
| Level-7 | 44900 | 10776 | 7184 | 3592 |
| Level-8 | 47600 | 11424 | 7616 | 3808 |
| Level-9 | 53100 | 12744 | 8496 | 4248 |
| Level-10 | 56100 | 13464 | 8976 | 4488 |
| Level-11 | 67700 | 16248 | 10832 | 5416 |
| Level-12 | 78800 | 18912 | 12608 | 6304 |
| Level-13 | 123100 | 29544 | 19696 | 9848 |
| Level-13A | 131100 | 31464 | 20976 | 10488 |
| Level-14 | 144200 | 34608 | 23072 | 11536 |
Classification of Cities and Towns as per the percentage for the purpose of determining HRA
| State / Union Territory | Cities Classified as ‘X’ | Cities Classified as ‘Y’ |
| Andaman & Nicobar Islands | – | – |
| Andhra Pradesh Telangana |
Hyderabad (UA) | Vijayawada (UA) Warangal (UA) Greater Visakhapatnam (M.Corpn.) Guntur (UA) Nellore (UA) |
| Arunachal Pradesh | – | – |
| Assam | – | Guwahati (UA) |
| Bihar | – | Patna (UA) |
| Chandigarh | – | Chandigarh (UA) |
| Chhattisgarh | – | Durg-Bhilai Nagar (UA) Raipur (UA) |
| Dadra & Nagar Haveli | – | – |
| Daman & Diu | – | – |
| Delhi | Delhi(UA) | – |
| Goa | – | – |
| Gujarat | Ahmadabad (UA) | Rajkot (UA) Jamnagar (UA) Bhavnagar (UA) Vadodara (UA) Surat (UA) |
| Haryana | – | Faridabad* (M.Corpn.) Gurgaon* (UA) |
| Himachal Pradesh | – | – |
| Jammu & Kashmir | – | Srinagar (UA) Jammu(UA) |
| Jharkhand | – | Jamshedpur (UA) Dhanbad (UA) Ranchi (UA) Bokaro Steel City (UA) |
| Karnataka | Bengalore / Bengaluru (UA) | Belgaum (UA) Hubli-Dharwad (M.Corpn.) Mangalore (UA) Mysore (UA) Gulbarga (UA) |
| Kerala | – | Kozhikoda (UA) Kochi (UA) Thiruvanathapuram (UA) Thrissur (UA) Malappuram (UA) Kannur (UA) Kollan (UA) |
| Lakshadweep | – | – |
| Madhya Pradesh | – | Gwalior (UA) Indore (UA) Bhopal (UA) Jabalpur (UA) Ujjain (M.Corpn.) |
| Maharashtra | Greater Mumbai (UA), Pune (UA) |
Amravati (M.Corpn.) Nagpur (UA) Aurangabad (UA) Nashik (UA) Bhiwandi (UA) Solapur (M.Corpn.) Kolhapur (UA) Vasai–Virar City (M.Corpn.) Malegaon (UA) Nanded-waghala (M.Corpn.) Sangli (UA) |
| Manipur | – | – |
| Meghalaya | – | – |
| Mizoram | – | – |
| Nagaland | – | – |
| Odisha | – | Cuttack (UA) Bhabaneswar (UA) Raurkela (UA) |
| Puducherry (Pondicherry) | – | Puducherry / Pondicherry (UA) |
| Punjab | – | Amritsar (UA) Jalandhar (UA) Ludhiana (M.Coprn.) |
| Rajasthan | – | Bikaner (M.Corpn.) Jaipur (M.Corpn.) Jodhpur (UA) Kota (M.Corpn.) Ajmer (UA) |
| Sikkim | – | – |
| Tamil Nadu | Chennai (UA) | Salem (UA) Tiruppur (UA) Coimbatore (UA) Tiruchirappalli (UA) Madurai (UA) Erode (UA) |
| Tripura | – | – |
| Uttar Pradesh | – | 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 | – | Dehradun (UA) |
| West Bengal | Kolkata (UA) | Asansol (UA) Siliguri(UA) Durgapur (UA) |
NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE
Like to know more about Transport Allowance
- Classification of Cities for House Rent Allowance to CG Employees March 29, 2023
- 7th Pay House Rent Allowance to Central Government employees March 24, 2023
- Revised Rates (27% 18% 9%) of HRA from January 2021 in lieu of July 2021 November 3, 2021
- Y Class Classification of Cities for HRA: Orders issued August 2021 August 30, 2021
- Revised HRA Rates from January 2021 – IRTSA August 29, 2021
- HRA Revised Order 2021 PDF Download – NVS August 25, 2021
- HRA Increase Order July 2021 PDF Download August 23, 2021
- Inclusion of HRA and Transport Allowance for the purpose of calculating Overtime Allowance February 8, 2021
- Additional HRA and Other Concessions to the Employees working in Kashmir Valley October 15, 2020
- Frequently Asked Questions with Answers about House Rent Allowance (HRA) September 16, 2020
- Re-classification of cities for the purpose of grant of House Rent Allowance to Railway Employees July 23, 2020
- No Accommodation Certificate (NAC) for HRA February 14, 2020
- Home Loan Interest Subsidy – Interest Rate and Eligibility February 12, 2020
- HBA Interest Rate Declined from 8.5% to 7.9% October 4, 2019
- 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
- Grant of HRA to CG Employees on Transfer from one station to another station – MoD orders October 22, 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
Also Check: Central Government Pay Matrix Table 2022 PDF
Dear sir,
Please clarify whether UA includes Hyderabad Municipal Development Authority (HMDA) and not only Municipal limits (GHMC) .?
Dear sir what is the mean of Hyderabad (UA) is only Greater Hyderabad municipal corporation or Hyderabad Urban Area please clarify it.