New Delhi: After Prime Minister Narendra Modi approved the 8th Central Pay Commission for central government employees on January 16, 2205, the beneficiaries are keeping their fingers crossed in regards to salary hike, and perks including House Rent Allowance (HRA) and other factors. In this article, we inform you about how much was the share of HRA in the salary in the 7th Pay Commission.
Prior to the implementation of 7th Pay Commission, HRA was paid @ 30 per cent for X (population of 50 lakh and above), 20 per cent for Y (5 to 50 lakh) and 10 per cent for Z (below 5 lakh) category of cities.
Under the 7th Pay Commission, cities were divided into three parts for HRA. Categories X, Y and Z. 7th CPC had recommended reduction in the existing rates to 24 per cent for X, 16 per cent for Y and 8 per cent for Z category of cities.
With the HRA at the reduced rates may not be sufficient for employees falling in lower pay brackets, the government decided that the HRA should not be less than Rs 5400 for X category, Rs 3600 for Y and Rs 1800 for Z category of cities. The floor rate was calculated @ 30 per cent, 20 per cent and 10 per cent of the minimum pay of Rs 18000.
It was also finalised that when Dearness Allowance reaches 25 per cent, then 27 per cent HRA will be given in X category, 18 per cent in Y category and 9 per cent in Z category. In a situation when DA exceeds 50 per cent, then 30 percent HRA will be given in X category and 20 per cent and 10 per cent in Y and Z category respectively.
7th Pay Commission HRA
Prime Minister Narendra Modi on January 16, 2025 approved 8th pay commission. The move will benefit 1.15 crore central employees and pensioners. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
