7th Pay Commission allowance: House rent allowance (HRA) is one of the biggest benefits for central government employees. So, whenever there is good news, it is more than welcome. Now, Centre has said that if a city has been upgraded
on the basis of its population, the HRA of the central government employees living there will be increased, thereby, removing all confusion related to this allowance. Let us try to understand as to how it will be calculated for employees living in the cities of different category.
on the basis of its population, the HRA of the central government employees living there will be increased, thereby, removing all confusion related to this allowance. Let us try to understand as to how it will be calculated for employees living in the cities of different category.
According to Harishankar Tiwari, former President, AG Office Brotherhood, Allahabad and Assistant Secretary-General of All India Audit and Accounts Association, the Central government has revised the HRA after implementing 7th Pay commission. There were 3 categories - X, Y and Z for distribution of this.
The X category cities have population of over Rs 50 lakhs, and the government servants living there get maxiumum of 24% HRA per month, in the Y category cities, the HRA is 16 percent; while 8% HRA is earmarked for Z category cities.
The Finance Ministry circular stated that if a city has been upgraded on the basis of its population, the HRA of the government employee living there will be enhanced. Tiwari tol Zee Business Online that if a city's population is over 5 lakh, such city will fall under Y category from the Z category, and will receive 16% HRA instead of 8%.
Tiwari further stated that categories of different cities for 7th Pay Commission based HRA have been decided on the basis of census 2011.
The government has also made upgradation of the cities based on the report of their agencies, and the same has also found mention in the circular issued by the Finance Ministry.
