Impact of a 28% increase in DA – X Y Z classification of cities for 7th CPC HRA 2021 revised rates to 27%, 18%, and 9% of basic pay, respectively, as of July 1, 2021
Revised Rates of 7th CPC HRA July 2021
| X Class | 27% |
| Y Class | 18% |
| Z Class | 9% |
New rates of 7th CPC HRA for X Y Z classification of cities w.e.f. 01.07.2021 due to DA cross the ceiling 25%
Today 14.07.2021 Center approved a 28 percent increase in DA for Central Government employees and DR for pensioners with effect from July 1, 2021, and as per the order issued by the Finance Ministry vide OM dated July 7, 2017, the rates of HRA will be revised to 27 percent, 18 percent, and 9 percent for X, Y, and Z class cities respectively when compared to the previous year’s rates.
Currently, House Rent Allowance 7th CPC HRA 2021 is paid at a rate of 24 percent, 16 percent, and 8% for X, Y, and Z cities, respectively. Since the Dearness Allowance (DA) crossed the 25% level, HRA rates in X, Y, and Z cities will be revised to 27 percent, 18 percent, and 9 percent of basic pay, respectively.
Classification of Cities for HRA as per 7th CPC – X Y Z Classification of Cities for HRA
When DA hits 50%, the 7th Pay Commission recommended revising the HRA to 30%, 20%, and 10% of Basic Pay in X, Y, and Z cities, respectively, when DA reaches 100%. However, the Central Government’s Allowance Committee made the following revisions.
- HRA for cities in the X (population of 50 lakh or more), Y (5 to 50 lakh), and Z (below 5 lakh) categories shall not be less than Rs.5,400 per month, Rs.3,600 per month, and Rs.1,800 per month, calculated at 30% of minimum pay for cities in the X (population of 50 lakh or more), 20% for cities in the Y (5 to 50 lakh), and 10% for cities in the Z (below 5 lakh) categories.
- When Dearness Allowance (DA) crosses 25 percent, HRA will be revised to 27 percent, 18 percent, and 9 percent of Basic Pay in X, Y, and Z cities, and to 30 percent, 20 percent, and 10 percent of Basic Pay in X, Y, and Z cities when DA crosses 50 percent.
