7th CPC – House Rent Allowance Enhaned Pay Scales In Three Levels With Profit
7th Pay Commission House Rent Allowance Enhaned Pay Scales in three Levels with Profit
On 28.6.2017, the Union Cabinet Charied by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modification. 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.
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 Rs.5400, Rs.3600 and Rs.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.
The below table describes the details of profit and the benefit pay scales…