8th Pay Commission HRA: Check Percentage Of House Rent Allowance To Central Govt Employees In X, Y, Z Cities Under 7th Pay Commission

The Modi cabinet on 16 January 2025 approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners . 

The 8th Pay Commission is also expected to make recommendations on house rent allowance (HRA) for the central government employees. Here's a brief look at percentage of HRA being recommended by the 7th Pay Commission, and the Cabinet approval that followed thereafter.

The Implementation of recommendations of the 7th Pay Commission relating to grant of House Rent Allowance (HRA) to Central Government employees, the admissibility of House Rent Allowance (HRA) was under :

Classification of Cities/Towns

X, Y, Z Cities

Rate of House Rent Allowance per month as a percentage of Basic Pay only

24%, 16% and 8% respectively

The rates of HRA will not be less than Rs.5400/-, 3600/-& 1800/- at X, Y & Z class cities respectively, as per the 7th Pay Commission

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%.

Special orders on continuance of HRA at Delhi ("X" class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar ("Y" class city) rates to Jalandhar Cantt., at "Y" class city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh ("Y" class city) to Panchkula, S.A.S. Nagar (Mohali) were allowed to continue.

These orders were effective from 1st July, 2017. The orders apply to all civilian employees of the Central Government. The orders was also be applicable to the civilian employees paid from the Defense Services Estimates.