Enhanced HRA benefit only 15 Slabs for lower levels
HRA is currently paid @ 30% for X (population of 50 lakh & above),
20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of
cities. 7th CPC has recommended reduction in the existing rates to 24%
for X, 16% for Y and 8% for Z category of cities.
As the HRA at the reduced rates may not be sufficient for employees
falling in lower pay bracket, it has been decided that HRA shall not be
less than ₹5400, ₹3600 and ₹1800 for X, Y and Z category of cities
respectively. This floor rate has been calculated @ 30%, 20% and 10% of
the minimum pay of ₹18000. This will benefit more than 7.5 lakh
employees belonging to Levels 1 to 3.
The below table shows the benefit basic pay in 1, 2 and 3 Levels
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