Now with the proposals as per the 7th Pay Commission being cleared, the government is gearing up to implement the same.
At least 48 lakh employees of the central government will benefit from the HRA. The minimum HRA would go up from Rs 2,100 to Rs 5,400.
Although the HRA percentage has been lowered, it is subjected to minimum fixation of HRA of Rs 5,400 for X, Rs 3,600 for Y and Rs 1,800 for Z category of cities for Level 1, 2, and 3 employees. This minimum HRA floor rate has been calculated on the basis of previous HRA rates i.e. 30%, 20%, 10%.
The table below elaborates how more than 7.5 lakh employees belonging to Levels 1 to 3 in the pay matrix will be benefitted owing to fixation of minimum HRA.
| Pay Matrix | X (Minimum Rs 5,400) | Y (Minimum Rs 3,600) | Z (Minimum Rs 1,800) | |
| Level 1- 18,000 | Rs 4320 (+1,080) | Rs 2880 (+ 720) | Rs 1440 (+360) | |
| Level 2- 19,900 | Rs 4776 (+624) | Rs 3184 (+416) | Rs 1592 (+208) | |
| Level 3- 21,700 | Rs 5208 (+192) | Rs 3472 (+128) | Rs 1736 (+64) | |
More than 48 lakh central government employees will start getting HRA (House Rent Allowance) hike in range of 106 percent to 157 percent from this month (July, 2017) salaries as the Union Cabinet chaired by the Prime Minister Narendra Modi on last Wednesday approved the recommendations of the 7th CPC on allowances with some modifications.
