House Rent Allowance 2021: The rates of HRA has been revised for all categories of central government employees to 27%, 18%, 9% from July 2021. After the DA crossed the mark of 25%, as per the recommendations of 7th pay commission, the rates of House Rent Allowance has increased according to the classification of cities and towns (Class X, Y, Z).
Is HRA increase from July 2021 for CG Employees?
Yes, the rates of House Rent Allowance (HRA) for Central Govt Employees will be revised from July 2021.
HRA Revised Order July 2021 PDF Download
Kendriya Vidyalaya Sangathan (HQ)
18, Institutional Area, Shaheed Jeet Singh Marg, New Delhi-16
Phone No. 011-26858570
Email: kvsbu[email protected]
The Deputy Commissioner/ Director
Kendriya Vidyalaya Sangathan,
All Regional Offices and ZIETs
Sub: Revision in rate of House Rent Allowance (HRA) – regarding.
Madam / Sir
Consequent upon increase in DA rates vide Office Memorandum no.1/1/2020-E-II(B) dated 20.07.2021 from 17% to 28% w.e.f. 01.07.2021 (Which is more than 25%), the Office Memorandum number 2/5/2017-E.II(B) dated 07.07.2017, Govt. of India, Ministry of Finance, Department of Expenditure, may be complied with. Thus, enhanced rate of HRA i.e. 27%, 18% and 9% for X, Y and Z Class cities are applicable w.e.f. 01.07.2021.
All are requested to take necessary action accordingly.
Assistant Commissioner (Finance)
Waiting for HRA Order (From July 2021)!
After the announcement of the Dearness Allowance hike (enhanced from 17% to 28%) the rates of HRA also will be revised as per the recommendations of the 7th pay commission. The Central Govt has already accepted the recommendations and published them in Gazette Notification. So, the Department of Expenditure will publish the necessary orders soon!
Current and Revised HRA Rates:
X Class Cities (24%): 27% of Basic Salary
Y Class Cities (16%): 18% of Basic Salary
Z Class Cities (8%): 9% of Basic Salary
HRA When DA Crosses 25
All Central Government employees including Railways and Armed Forces Personnel are paid House Rent Allowance (HRA) as per the recommendations of the 7th pay commission.
If DA Crosses 25 Percent Hike Allowances
Nobody denies that the House Rent Allowance (HRA) is the major part of the salary element for Government employees. At present, the HRA is paid at the rate of 24%, 16%, and 8% as per the classification of the cities and towns notified by the Finance Ministry. The Indian cities and towns are classified as per the population as X, Y, and Z cities.
- 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
And, one more modification made in the rate of HRA after the recommendations of the Allowance Committee. The minimum rates of HRA had been fixed as Rs. 5400 per month for X category cites, Rs 3600 per month for Y category cities and Rs. 1800 per month for Z category cities.
Now the DA is increased to 21% (effective from 1st January 2020) from the existing level of 17%. As per our expectation on the DA, the next installment of additional DA will hike by 4%. So, the total DA will become 25%.
The main and important recommendation of 7th pay commission on the revision of HRA is, if the rate of Dearness Allowance (DA) crosses 25%, the rate of House Rent Allowance (HRA) will be revised to 27%, 17% and 9% for X, Y and Z cities and towns respectively.
And also the 7th pay commission has recommended that the rate of HRA shall be further revised to 30%, 20%, and 10% of basic salary in X, Y, and Z cities and towns as per the classification when the DA crosses 50%.
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