7th Pay Commission: Calculate HRA here after Cabinet decision

The government took the decision to revise rates upwards keeping in mind inflation trends.

The 7th Pay Commission recommendations were approved by the Union Cabinet in respect of HRA.

HRA 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.

Upward revision

The pay panel had recommended that the 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%.

Who benefits

The government took the decision to revise rates upwards keeping in mind inflation trends. It was decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA.

Calculate HRA after Cabinet decision

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 ₹5400, ₹3600 and ₹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 ₹18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

Check out the calculator here:

Children education allowance

The rate of children education allowance has been increased from Rs 1,500 per month / child (max. 2) to Rs 2250 per month / child (max.2). Hostel Subsidy will also go up from Rs 4500 per month to Rs 6750 per month.

Existing rates of Special Allowance for Child Care for Women with Disabilities has been doubled from Rs 1500 per month to Rs 3000 per month. Higher Qualification Incentive for Civilians has been increased from Rs 2000 - Rs 10000 (Grant) to Rs 10000 - Rs 30000 (Grant).

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