Home7th Pay Commission7th Pay Commission recommendation for House Rent Allowance (HRA)

7th Pay Commission recommendation for House Rent Allowance (HRA)

7th Pay Commission recommendation for House Rent Allowance (HRA)

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

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).

7th Pay Commission recommended following rates after taking various considerations

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 6
Below 5 lakh Z 8

HRA – DA crosses above 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 – DA crosses above 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

Currently, in the case of those drawing either NPA or MSP or both, HRA is being paid as a percentage of Basic Pay+NPA or Basic Pay+MSP or Basic Pay+NPA+MSP respectively. 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, and therefore should be calculated as a percentage of Basic Pay only. Add-ons like NPA, MSP, etc. should not be included while working out HRA

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7 COMMENTS

  1. How pensioners calculate their pension. On the basis of pension fixed or gross pension received.

    What is the criteria. Pls explain in details. My last pay scale was 9300-34800. Pay band 2 that is 4800.

  2. If one person is working in state govt & his spouse in central govt. Both are living in private tented house. Can both are eligible for hra or not?

  3. HRA should be ,30% in metro cities as v r not getting house rent for present hra. In Calcutta,Delhi hyd it is very difficult. I request through u consider earlier %ages. In telangana state HRA is 30% at hyd.

  4. not happy with the hra recommendations,there are thousands of people who stays in x class city and go to work in z class city(20-30kms far),how is it justified for those people to get only 8% hra??/? they are paying higher house rent

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