The Modi Cabinet on 16 January 2025 approved the formation of the 8th Pay Commission to revise the salaries of about 50 lakh central government employees and allowances of 65 lakh pensioners. HRA of 8th Pay Commission The 8th Pay Commission is also expected to make recommendations on House Rent Allowance (HRA) for central government employees. Here is a brief look at the percentage of HRA recommended by the 7th Pay Commission and the subsequent Cabinet approval.

HRA Classifications of 7th Pay Commission

Under the implementation of the 7th Pay Commission recommendations regarding the grant of House Rent Allowance (HRA) to Central Government employees, the admissibility of House Rent Allowance (HRA) was as follows:

Classification of cities/towns

X, Y, and Z cities

Rate of House Rent Allowance per month as a percentage of basic pay only

24%, 16% and 8% respectively

HRA Classifications of 7th Pay Commission

As per the 7th Pay Commission, the rates of HRA in X, Y, and Z class cities shall not be less than Rs.5400/-, 3600/- and 1800/- respectively.

HRA vs DA of 7th Pay Commission

When Dearness Allowance (DA) exceeds 25%, the rates of HRA for X, Y, and Z class cities shall be revised to 27% 18%, and 9% respectively and further revised to 30%. 20% and 10% when DA exceeds 50%.

7th Pay Commission HRA Special Order

Central Government employees posted in Faridabad, Ghaziabad, Noida, and Gurgaon were allowed to continue HRA at Delhi ("X" class city) rates, Jalandhar Cantt, Shillong, Goa, and Port Blair at "Y" class city rates, and Panchkula, SAS Nagar (Mohali) at par with Chandigarh ("Y" class city).

7th Pay Commission HRA

These orders were effective from July 1, 2017. These orders apply to all civilian employees of the Central Government. These orders will also apply to civilian employees paid from Defence Services Estimates.