How HRA is calculated under the 7th CPC
A practical guide to X, Y and Z city rates, DA-linked revisions and minimum HRA.
Current percentage rates
House Rent Allowance depends on the employee's Basic Pay and the classification of the place of posting. The 7th CPC rates change when Dearness Allowance crosses prescribed thresholds.
With DA at or above 50%, the percentage rates are:
- X-class city: 30% of Basic Pay
- Y-class city: 20% of Basic Pay
- Z-class city: 10% of Basic Pay
The corresponding minimum monthly HRA amounts are ₹5,400, ₹3,600 and ₹1,800 respectively, subject to admissibility.
Example
For Basic Pay of ₹44,900 in an X-class city:
HRA = ₹44,900 × 30% = ₹13,470 per month
For the same Basic Pay in a Y-class city, HRA is ₹8,980. In a Z-class city, it is ₹4,490.
Important checks
- Confirm the official classification of the employee's place of posting.
- Confirm that HRA is admissible and that Government accommodation has not been accepted or occupied.
- Apply departmental instructions in cases involving transfer, leave, deputation or temporary stay.
- Compare the percentage result with the applicable minimum HRA.
The Salary Calculator applies the percentage and minimum amount after you select the city class.
Official source
Refer to the Department of Expenditure HRA compendium and subsequent orders for the employee's exact circumstances.
HRA admissibility can depend on accommodation and posting facts. This guide should not replace scrutiny of the service record and applicable orders.