HRA hike, TA hike for Central Govt. employees and CPSE or PSU employees, when DA crosses 50%

Major Contents in the Post: (Jump to the Section)

  1. HRA hike for 7th CPC central government employees and Armed Forces
  2. HRA hike for 3rd PRC CPSE or PSU employees
  3. TA hike for 7th CPC central government employees
  4. HRA classification based on cities of India

HRA will be hiked for 7th CPC Central Govt. employees and Armed Forces personnel, when DA crosses 50%:

At present, the Dearness Allowance is below 50%. As per 7th CPC, there is a condition that HRA will be revised if DA crosses 50%. So, accordingly the HRA will be increased to 30% / 20% / 10% from presently 27% / 18% /9 %, based on the population of city.

This new HRA will be applied in addition to the revised DA. So, where DA will be increased to 50%, HRA will also be increased to 30%, for metro cities (point no. 3 of order – attached below). While the losses in salary, suffered for 18 months from Jan’20 to Jun’21 due to the freezed DA/DR order, can’t be compensated in any manner, still we can get consoled by the dual increments in DA/DR as well as HRA.

HRA order to central Govt. employees in 7th cpc
HRA order to central Govt. employees in 7th cpc

Official Order of Implementation of 7th CPC for grant of House Rent Allowance (HRA) to Central Govt. employees :(Source:doe.gov.in)

The department of Expenditure (DoE) under ministry of Finance has issued the HRA order dated 7th July 2017, for 7th CPC Central Govt. employees.

Official Order of Implementation of 7th CPC for grant of House Rent Allowance (HRA) to Armed Forces Personnel :

The department of Defence (DoD) of Govt. of India has issued the HRA order dated 11th October 2017, for 7th CPC Armed Forces Personnel.

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HRA will be hiked for 3rd PRC CPSE or PSU employees, when DA crosses 50%:

At present, the Dearness Allowance is below 50%. As per 3rd PRC, there is a condition that HRA will be revised if DA crosses 50%. So, accordingly the HRA will be increased to 30% / 20% / 10% from presently 27% / 18% /9 %, based on the population of city.

This new HRA will be applied in addition to the revised DA. So, where DA will be increased to 50%, HRA will also be increased to 30%, for metro cities (point no. 1(ii) of order – attached below). While the losses in salary, suffered for 9 months from Oct’20 to Jun’21 due to the freezed DA/DR order, can’t be compensated in any manner, still we can get consoled by the dual increments in DA/DR as well as HRA.

HRA order for 3rd PRC employees of CPSEs
HRA order for 3rd PRC employees of CPSEs

Official Order of Implementation of 3rd PRC for grant of House Rent Allowance (HRA) to CPSE or PSU employees : (Source:doe.gov.in)

The department of Public Enterprises (DPE) under Ministry of Heavy Industries and Public Enterprises has issued the HRA order dated 4th August 2017, for 3rd PRC CPSE or PSU employees.

What is HRA, House Rent Allowance (HRA) for employees?

Many employees who work in Central Govt. job, State Govt. job, Public sector units (PSUs) or a private company, they have two options of having residence. Either they will reside in their own home / on-rent or they will reside in the Govt.’s provided or Company’s provided house.

So, if one resides in the Govt.’s provided or Company’s provided house, they will not get any house rent allowance (HRA) in the salary. But, for those employees, who reside in their own home or on rent, they will be given house rent allowance (HRA) in the salary.

HRA, House Rent Allowance (HRA) for 6th CPC Central Govt. employees & Armed forces personnel and for 2nd PRC PSUs or CPSEs employees:

In the 6th CPC and 2nd PRC, the HRA slabs were divided among 3 categories based on the population of city.

  1. HRA for 6th CPC and 2nd PRC employees was paid @ 30%, for city X (population of 50 lakh & above),
  2. HRA for 6th CPC and 2nd PRC employees was paid @ 20%, for city Y (population of 5 to 50 lakh),
  3. HRA for 6th CPC and 2nd PRC employees was paid @ 10%, for city Z (population of below 5 lakh)

HRA, House Rent Allowance for 7th CPC Central Govt. employees & Armed forces personnel and for 3rd PRC PSUs or CPSEs employees, when DA is below 25%:

In the 7th CPC and 3rd PRC, the HRA slabs were also divided among 3 categories based on the population of city, but with reduced rate of HRA.

  1. HRA for 7th CPC and 3rd PRC employees is paid @ 24 %, for city X (population of 50 lakh & above),
  2. HRA for 7th CPC and 3rd PRC employees is paid @ 16 %, for city Y (population of 5 to 50 lakh),
  3. HRA for 7th CPC and 3rd PRC employees is paid @ 8 %, for city Z (population of below 5 lakh)

But, keeping in view the current inflation trends, the Government had decided that these rates will be revised upwards when DA crosses 25% and 50% respectively.

HRA, House Rent Allowance for 7th CPC Central Govt. employees & Armed forces personnel and for 3rd PRC PSUs or CPSEs employees, when DA crosses 25%:

In the 7th CPC and 3rd PRC implementation, the HRA slabs were divided among 3 categories based on the population of city. It was decided that due to inflation, the rate of HRA will be revised when the Dearness Allowance (DA) will cross 25%.

  1. HRA for 7th CPC and 3rd PRC employees will be paid @ 27 %, for city X (population of 50 lakh & above), if DA crosses 25%.
  2. HRA for 7th CPC and 3rd PRC employees will be paid @ 18 %, for city Y (population of 5 to 50 lakh), if DA crosses 25%.
  3. HRA for 7th CPC and 3rd PRC employees will be paid @ 9 %, for city Z (population of below 5 lakh), if DA crosses 25%.

HRA, House Rent Allowance (HRA) for 7th CPC Central Govt. employees & Armed forces personnel and for 3rd PRC PSUs or CPSEs employees, when DA crosses 50%:

In the 7th CPC and 3rd PRC implementation, the HRA slabs were divided among 3 categories based on the population of city. It was decided that due to inflation, the rate of HRA will be revised when the Dearness Allowance (DA) will cross 50%.

  1. HRA for 7th CPC and 3rd PRC employees will be paid @30%, for city X (population of 50 lakh & above), if DA crosses 50%.
  2. HRA for 7th CPC and 3rd PRC employees will be paid @ 20 %, for city Y (population of 5 to 50 lakh), if DA crosses 50%.
  3. HRA for 7th CPC and 3rd PRC employees will be paid @ 10 %, for city Z (population of below 5 lakh), if DA crosses 50%.

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Highlights of HRA for 7th CPC Central Govt. employees, Armed forces and PSUs or CPSEs:

  1. The rates of HRA will not be less than Rs. 5400/-, 3600/- & 1800/- at X, Y & Z class cities respectively.
  2. The rates of HRA will be revised to 27%, 18% and 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) crosses 25 percent and further revised to 30%,20% and 10% when DA crosses 50%.
  3. The term “basic pay” in the revised pay structure means the pay drawn in the prescribed pay levels in the Pay Matrix and does not include Non-Practicing Allowance (NPA), Military Service Pay (MSP) etc. or any other type of pay like special pay etc.
  4. Special orders on continuance of HRA at Delhi (X’ class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar (‘ Y’ class city) rates to Jalandhar Cantt. at “Y” class city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh (‘Y’ class city) to Panchkula. S.A.S. Nagar(Mohali) which have been allowed to continue vide Para ‘4’ of MoF O.M. No. 2/5/2014-D.II(B) dated 21.07.2015 and O.M. No. 2/2/2016-E.II(B) dated 03.02.2017, shall continue till further orders.

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Classification of cities for grant of HRA, House Rent Allowance for 7th CPC Central Govt. employees, Armed forces and PSUs or CPSEs:

The below table tells you the classification of cities across all the states of India. In the table, there are only two classifications X and Y, for the purpose of HRA. The remaining cities / towns in various States / UTs which are not covered by classification as “X” or “Y”, are classified as “Z” for the purpose of HRA.

UA – Urban Agglomeration, M.Corpn. – Municipal Corporation

SI.
No.
STATES/ UNION TERRITORIESCITIES CLASSIFIED AS “X” for HRA (population of 50 lakh & above)CITIES CLASSIFIED AS “Y” (population of 5 to 50 lakh) for HRA
1.ANDAMAN &
NICOBAR ISLANDS
2.ANDHRA PRADESH/ TELANGANAHyderabad (UA)Vijayawada (UA), Warangal (UA), Greater Visakhapatnarn
(M.Corpn.), Guntur (UA), Ne/lore (UA)
3.ARUNACHAL PRADESH
4.ASSAMGuwahati (UA)
5.BIHARPatna (UA)
6.CHANDIGARHChandiqarh (UA)
7.CHHATTISGARHDurg-Bhilai Nagar (UA), Raipur (UA)
8.DADRA & NAGAR HAVEL!
9.DAMAN & DIU
10.DELHIDelhi (UA) 
11.GOA
12.GUJARATAhmadabad (UA)Rajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)
13.HARYANAFaridabad*(M. Corpn.), Gurgaon*(UA)
14.HIMACHAL PRADESH
15.JAMMU & KASHMIRSrinagar (UA), Jammu (UA)
16.JHARKHANDJamshedpur (UA), Dhanbad (UA), Ranchi (UA), Bokaro Steel City (UA)
17.KARNATAKABengalore/Bengaluru (UA)Belgaum (UA), Hubli-Dharwad (M.Corpn.), Mangalore (UA), Mysore (UA), Gulbarga (UA)
18.KERALA.Kozhikode (UA), Kochi (UA), Thiruvanathapurarn (UA), Thrissur (UA), Malappuram (UA), Kannur (UA), Kolam (UA)
19.LAKSHADWEEP
20.MADHYA PRADESHGwalior (UA), Indore (UA), Bhopal (UA), Jabalpur (UA), Ujjain (M. Corpn.)
21.MAHARASHTRAGreater Mumbai (UA),
Pune (UA)
Amravati (M.Corpn.), Nagpur (UA), Aurangabad (UA), Nashik (UA), Bhiwandi (UA), Solapur (M.Corpn.), Kolhapur (UA), Vasai-Virar City (M. Corpn.), Malegaon (UA), Nanded-Waghala (M. Corpn.), Sanali (UA)
22.MANIPUR
23.MEGHALAYA
24.MIZORAM
25.NAGALAND
26.ODISHAGuttack (UA), Bhubaneswar (UA), Raurkela (UA)
27.PUDUCHERRY
(PONDICHERRY)
Puducherry/Pondicherry (UA)
28.PUNJABAmritsar (UA), Jalandhar (UA), Ludhiana (M. Coprn.)
29.RAJASTHANBikaner (M.Corpn.),  Jaipur (M.Corpn.),  Jodhpur (UA), Kata CM.Coron.), Ajmer (UA)
30.SIKKIM
31.TAMIL NADUChennai (UA)Salem (UA), Tiruppur (UA), Coimbatore (UA), Tiruchirappalli (UA), Madurai (UA), Erode (UA)
32.TRIPURA
33.UTTAR PRADESHMoradabad (M.Corpn.), Meerut (UA), Ghaziabad*(UA), Aligarh(UA), Agra (UA), Bareilly (UA), Lucknow (UA), Kanpur (UA), Allahabad (UA), Gorakhpur (UA), Varanasi (UA), Saharanpur (M.Corpn.), Noida* (CT), Firozabad (NPP), Jhansi (UA)
34.UTTARAKHANDDehradun (UA)
35.WEST BENGALKolkata (UA)Asansol (UA), Siliguri (UA), Durgapur (UA)
Classification of cities for grant of HRA, House Rent Allowance for 7th CPC Central Govt. employees ,Armed forces, CPSEs or PSUs

Travelling Allowance (TA) Rules as per 7th central pay commission:

The department of Expenditure (DoE) under ministry of Finance has issued the Travelling Allowance (TA) order dated 13th July 2017, for 7th CPC Central Govt. employees.

TA order to central Govt. employees in 7th cpc
TA order to central Govt. employees in 7th cpc

According to the rule, the rate of Travelling Allowance (TA) will be increased by 25%, when DA will cross 50% as per this 7th central pay commission. So, to get a hike in TA, DA needs to reach 50 %, which has not happened yet.

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DA, DR hike of all states and UTs of IndiaDA hike of Central Govt. Employees of 7th cpc, 6th cpc, 5th cpc
DA, DR hike of Indian Army, Navy and Air ForceDR hike of Central Govt. Pensioners and Family Pensioners
DA hike of Bank EmployeesDR hike of Bank Pensioners or Bank Retirees of all types
IDA hike for CPSE or PSU employees of 3rd prc, 2nd prc, 1997 pay scaleAICPI-IW of current month – To calculate DA, DR

Disclaimer: Kindly consult official website for any clarification.

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