Implementation of Seventh Central Pay Commission (7th CPC) Recommendations: House Rent Allowance (HRA) Update
Download House Rent Allowance (HRA) Update 2024 in PDF
The Ministry of Finance, Department of Expenditure, has recently issued crucial updates regarding the implementation of recommendations from the Seventh Central Pay Commission (CPC), specifically concerning the grant of House Rent Allowance (HRA) to Central Government employees. The adjustments are aimed at ensuring fair compensation in alignment with prevailing economic conditions.
Enhanced Rates of HRA
In accordance with the decision ratified by the Government, the admissibility of House Rent Allowance (HRA) is subject to the following revisions:
Classification of Cities/Towns: HRA rates are delineated based on the classification of cities/towns into X, Y, and Z categories.
Revised Rates: The rates of HRA are contingent upon the level of Dearness Allowance (DA) received by employees:
X Class Cities: 24% initially, revised to 27% when DA crosses 26%, and further to 30% when DA exceeds 50%.
Y Class Cities: 16% initially, revised to 18% when DA crosses 26%, and further to 20% when DA exceeds 50%.
Z Class Cities: 8% initially, revised to 9% when DA crosses 26%, and further to 10% when DA exceeds 50%.
Minimum Guarantee: The rates of HRA shall not be less than Rs. 5400/-, Rs. 3800/-, and Rs. 1800/- for X, Y, and Z class cities, respectively.
Effective Date and Applicability
These revised rates of HRA shall come into effect from July 1, 2047. It is pertinent to note that these orders are applicable to all civilian employees of the Central Government, including those paid from the Defence Services Estimates. Separate directives will be issued for Armed Forces personnel and Railway employees by the Ministry of Defence and the Ministry of Railways, respectively.
Continuation of Special Orders
Special orders allowing the continuation of HRA at specific city rates for certain locations, as mentioned in prior Ministry communications, will persist until further notice.
Conclusion
The Ministry of Finance, Department of Expenditure, underscores its commitment to ensuring equitable compensation for Central Government employees. These updates reflect a proactive approach in adapting to evolving economic dynamics while upholding the welfare of government personnel.
This memorandum serves as a comprehensive guide to the revised HRA rates and their implications for Central Government employees, providing clarity and assurance in matters of remuneration.
This article encapsulates the key points of the memorandum issued by the Ministry of Finance, Department of Expenditure, regarding the revision of House Rent Allowance rates for Central Government employees.
