HRA increases 1% if DA crosses 25%

Recently Central Government Employees are getting House Rent Allowance at the rate of 24%, 16% and 8% of basic pay for X, Y & Z class cities respectively w.e.f 01.07.2017.

As per DoE Office Memorandum No. 2/5/2017-E.II(B) Dt.07.07.2017, rates of HRA will be raised to 27%, 18% and 9% for X, Y & Z class cities respectively when DA crosses 25% and further raised to 30%, 20% & 10% when DA crosses 50%.

Cabinet  committee on 14.07.2021 has approved increase in DA by 11% for Central Government Employees (now reached to 17%+11%=28%) w.e.f July, 2021. Hence CG employees may get the benefit of hiked HRA. 

N.B. State Government employees of Odisha are now availing HRA @ 20%  and 5% for Urban & Rural cities based on basic pay as per 6th Pay Commission. 

In Odisha, three cities have been brought under 'Y' Class namely Cuttack (UA), Bhubaneswar (UA) and Rourkela (UA) and the rest Cities/towns under 'Z' Class.