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 c...
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.
COMMENTS