7th Pay Commission HRA approved by Govt at 24%, 16% and 8% – At initial pay slabs of Lower Pay level 30%, 20%, 10% retained

7th Pay Commission HRA approved by Govt at 24%, 16% and 8% – At initial pay slabs of Lower Pay level 30%, 20%, 10% retained – Other Pay Levels will get 27%, 18%, 9% after DA increases by 25%

7th Pay Commission HRA – With a few modifications Cabinet has accepted the 7th Pay Commission recommendations as such with respect to House Rent Allowance payable to all Central Government Employees.
Those modifications are:
1. While 7th Pay Commission recommended 24%, 16% and 8% for all Central Government Employees posted at X Class, Y Class and Z Class Cities respectively, Govt has retained 30%, 20% and 10% for Central Government Employees in the first 10 slabs in Pay Level 1, first 4 slabs in Pay Level 2 and one slab in Pay level 3 in Pay Matrix.
2. 7th Pay Commission recommended that HRA will be increased to 27%, 18% and 9% for Central Government Employees posted at X Class, Y Class and Z Class Cities respectively when Dearness allowance increases by 50%. However, Cabinet has approved the recommendations of Allowances Committee’s report that HRA is be increased to 27%, 18% and 9% for Central Government Employees posted at X Class, Y Class and Z Class Cities respectively when Dearness allowance increases by 25%

HRA recommended by 7th Pay Commission for Central Government Employees

Presently, HRA is payable at the following rates:

Population of Cities/Towns	Class of Cities/Towns	HRA rates as % of Basic Pay (including MSP and NPA)
50 lakh and above	X	30
50–5 lakh	Y	20
Below 5 lakh	Z	10

8.7.4 There are a large number of demands for paying HRA as a percentage of (Basic Pay + DA), instead of as a percentage of Basic Pay alone, as at present. Representations have also been received regarding enhancement of percentage rates and having only two classifications of Metros and Non-metros (instead of the present classification of X, Y and Z cities).
Taking various factors in to consideration, 7th Pay Commission has recommended following HRA Strucure

Population of Cities/Towns	Class of Cities/Towns	HRA rates as % of Basic Pay (including MSP and NPA)
50 lakh and above	X	24
50–5 lakh	Y	16
Below 5 lakh	Z	8

HRA when DA crosses 50%

Population of Cities/Towns	Class of Cities/Towns	HRA rates as % of Basic Pay (including MSP and NPA)
50 lakh and above	X	27
50–5 lakh	Y	18
Below 5 lakh	Z	9

HRA when crosses 100%

Population of Cities/Towns	Class of Cities/Towns	HRA rates as % of Basic Pay (including MSP and NPA)
50 lakh and above	X	30
50–5 lakh	Y	20
Below 5 lakh	Z	10

7th Pay Commission has also proposed that HRA should be calculated only on the basis of Basic Pay. Hence the present practice of calculating HRA on Pay and additional pay heads such as NPA, MSP etc will be dispensed with.
Source: PIB