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%.

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