HRA rates and the DA link

The 7th CPC set HRA at 24%, 16% and 8% of basic pay for X, Y and Z cities, with an automatic escalator: rates rose to 27/18/9 when DA crossed 25% (July 2021) and were to reach 30/20/10 when DA crossed 50% (which happened in January 2024 — the restored 30/20/10 rates apply per DoE orders; this calculator uses the widely applied 27/18/9 unless your department has notified the higher slab) (DoE orders). Under the 8th CPC, rates are expected to be rationalised again on the larger revised basic pay.

Frequently asked questions

What are the current HRA rates for Central Government employees?

X class (metro) cities: 27% of basic pay. Y class cities: 18%. Z class (all other) cities: 9%. These rates apply after DA crossed 50%, per the 7th CPC formula.

Which cities are X class for HRA?

Eight cities with population above 50 lakh: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Is there a minimum HRA?

Yes. HRA cannot be less than ₹5,400 (X), ₹3,600 (Y) or ₹1,800 (Z) per month — floors set at 30%, 20% and 10% of the ₹18,000 minimum pay.

Is HRA taxable for government employees?

HRA is exempt under Section 10(13A) to the extent of the least of: actual HRA received, rent paid minus 10% of salary, and 50% (metro) or 40% (non-metro) of salary — but only in the old tax regime. In the new regime HRA is fully taxable.