7th CPC House Rent Allowance
7th Pay Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively
Based on the 7th CPC recommendation, Ministry of Finance released the Office Memorandum No.2/5/2017-E.II(B) on 7th July, 2017 for implementation of 7th CPC House Rent Allowance.
HRA Details :
| CLASSIFICATION OF CITIES/TOWNS | RATE OF HOUSE RENT ALLOWANCE PER MONTH AS A PERCENTAGE OF BASIC PAY ONLY |
|---|---|
| X | 24% |
| Y | 16% |
| Z | 8% |
Important Points to be noted in the O.M
- 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% & 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) crosses 25% and further revised to 30%, 20% & 10% when DA crosses 50%.
- Allowance shall be effective from 1st July, 2017
- The HRA will also be applicable to the civilian employees paid from the Defence Services Estimates, Armed Forces personnel and Railway employees
