7th Pay Commission latest update: Modi govt's big decision on HRA likely this New Year, check category and city-wise pay band

Check out the percentage of House Rent Allowance (HRA) pay band calculation for Railway Employees based on 7th pay commission.

New Delhi: The Narendra Modi government may bring up some more good news this new year for the Central government employees.

As per several media reports, the Modi government may announce a hike in the House Rent Allowance (HRA) in early January 2022. A report published by Jagran.com last week said that the Finance Ministry has already initiated planning on increasing the HRA of central government employees, a move that is expected to benefit more than 11.56 lakh employees working with Indian Railways. 

House Rent Allowance (HRA) calculation for Railway Employees based on 7th pay commission

HRA is paid @24 percent, 16 percent and 8 percent for X, Y & Z cities respectively. HRA not to be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z cities, calculated @30 percent, 20  percent and 10  percent of basic pay of Rs 18,000.

The 7th CPC had also recommended revision of HRA when DA reaches 50 percent and 100 percent, Govt decided to revise rates when DA crosses 25 percent and 50 percent respectively. 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-Practising Allowance (NPA) etc. or any other type of pay like special pay, etc.

It may be recalled that the Indian Railway Technical Supervisors Association and National Federation of Railwaymen have been demanding to implement HRA from January 1, 2021 based on 7th pay commission's recommendation. After increasing the house rent allowance, there will be a bumper increase in the salary.