Rates of HRA revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities w.e.f. 01st July 2021: Impact of DA Increase to 28%

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Rates of HRA revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities w.e.f. 01st July 2021: Impact of DA Increase to 28%

Rates of HRA revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities w.e.f. 01st July 2021: Impact of DA increase to 28% Today i.e. 14th July, 2

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Rates of HRA revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities w.e.f. 01st July 2021: Impact of DA increase to 28%

Today i.e. 14th July, 2021 the Cabinet Committee chaired by the Hon’ble Prime Minister Shri Narendra Modi today has approved increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% and as per the order issued by Finance Ministry vide OM dated 07.07.2017 the rates of HRA will be revised to 27% 18% & 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) crosses 25%.

Currently House Rent Allowance is being paid at the rate of 24%, 16% and 8% for X,Y and Z cities. The rates of HRA will now be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities since the Dearness Allowance (DA) crossed 25% level.

The 7th Pay Commission initially had recommended to revise the HRA at above rates when DA reaches 50% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 100%.  But the Allowance Committee constituted by Central Government made the following changes.

rates-of-hra-revised-to-27-18-and-9-of-basic-pay

(i) HRA shall not be less than Rs.5,400 per month, Rs.3,600 per month and Rs.1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities.

(ii) HRA shall be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 50%.

Accordingly the OM No.21512017-E.II(B) dated 07.07.2017 was issued by Department of Expenditure, Ministry of Finance. Click here to view

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