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Friday, 14 July 2017

7TH CPC HRA CALCULATION BASED ON 'X' , 'Y' AND 'Z' CATEGORIES OF CITIES

7th CPC HRA Calculation based on 'X' , 'Y' and 'Z' Categories of Cities

7th Pay Commission: See how much HRA you will get based on your city

After an year of wait, the central government employees are likely to get revised salary starting from July-end as per 7th Pay Commission. 

Last week, Ministry of Finance in a notification urged central ministries and department to rollout the revised rates of allowances under 7th Pay Commission from July itself. There are nearly 48 lakh employees who will be getting the higher salaries.

Union Cabinet meet which was chaired by Prime Minister Narendra Modi approved the recommendations of the 7th Pay Commission with 34 modifications.

As per the revised pay, the government has increased the minimum wage of the central government employees from Rs 7000 per month to Rs 18000 per month.


On allowance front, the Cabinet had said that house rent allowance (HRA) which is currently paid 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.

As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z category of cities respectively. 

This floor rate has been calculated 30%, 20% and 10% of the minimum pay of Rs18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%.

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