7th Pay Commission: HRA table with benefits for basic pay in 1,2,3 levels

It was decided that the HRA shall not be less than 5,400, Rs 3,600 and Rs 1,800.

The 7th Pay Commission recommendations were cleared by the Union Cabinet on Wednesday. Currently HRA is being paid at 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.

The pay panel had recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.

HRA rates reduced

It was decided that the HRA shall not be less than 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively. This floor rate has been calculated at 30%, 20% and 10% of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

Table 1

This is the HRA table for Pay Matrix Level 1 (1,800 GP)

Table 2

Pay matrix level 2 (1,900 GP)

Table 3

Pay matrix level 3 (2,000 GP)

Reduced rates

It was said that the HRA at the reduced rates may not be sufficient. This would affect those employees falling in the lower pay bracket. Hence it was decided that the HRA under the 7th Pay Commission shall not be less than 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively.

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