HRA recommended by 7th Pay Commission

HRA recommended by 7th Pay Commission for Central Government Employees

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

8.7.4 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).

Taking various factors in to consideration, 7th Pay Commission has reccommended following HRA Strucure

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	16
Below 5 lakh	Z	8

HRA when DA crosses 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 when crosses 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

7th Pay Commission has also proposed that HRA should be calculated only on the basis of Basic Pay. Hence the present practice of calculating HRA on Pay and additional pay heads such as NPA, MSP etc will be dispensed with.