HRA Increase after DA reaches 25 Percent

The Dearness Allowance is now enhanced to 28% from 1st July 2021. The DA indexed allowances like HRA Increase after DA reaches 25 Percent

How much HRA Increase after DA reaches 25 Percent

The House rent Allowance is now paid at the rate of 24%, 16% and 8% for X,Y and Z cities.

The rates of HRA shall be revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities since the Dearness Allowance (DA) crossed 25% level.

The 7th Pay Commission initially had revised the HRA to 24%, 16% and 8% for X, Y and Z category cities respectively. Also it has recommended to increase the HRA percentage to 27%, 18% and 9% when DA reaches 50% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 100%

Then the Allowance Committee constituted by Central Government made the following changes.

Read : Basics of Pay Matrix of 7th Pay Commission- Insider

The recommendations of the 7th CPC was accepted by the Allowance Committee with the following modifications:

(i) HRA shall not be less than Rs.5,400 per month, Rs.3,600 per month and Rs.1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities.

(ii) HRA Increase after DA reaches 25 Percent to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X, Y and Z cities when DA crosses 50%.