7th Pay Commission : Revised rates of House Rent Allowance (HRA) – MoF Resolution

7th Pay Commission : Revised rates of House Rent Allowance (HRA) – MoF Resolution

7th Pay Commission : Revised rates of House Rent Allowance
(HRA) – MoF Resolution 
7thcpc house rent allowances

Ministry of Finance (Department of Expenditure), New
Delhi issued a Resolution dated 6th July 2017 regarding
Allowances of 7th Pay Commission. Earlier 7th CPC in
its recommendations rationalized the existing rates of HRA by a factor of
0.8. Government accepted the recommendations of Pay Commission with the
following modifications –

*** (i) HRA shall not be less than Rs.5,400 per
month, Rs. 3,600 per month & Rs. 1,800 per month calculated @ 30% of
minimum pay for ‘X’ (population of 50 lakh & avove), 20% for ‘Y’ (5 to
50 lakh) and 10% for ‘Z’ (below 5 lakh) category of cities.***(ii) HRA
shall be revised to 27%, 18% and 9% of Basic Pay in ‘X’, ‘Y’ & ‘Z’
cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and
10% of Basic Pay in ‘X’, ‘Y’ & ‘Z’ cities when DA crosses 50%.

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New Delhi, the 6th July, 2017 
No. 11-1/2016-IC.
– The Seventh Central Pay Commission (the Commission) was set up by the
Government of India vide Resolution No. 1/1/2013-E.III (A), dated the 28th
February, 2014. The period for submission of report by the Commission was
extended upto 31St December, 2015 vide Resolution No.1/1/2013-E.III (A),
dated the 8th September, 2015. The Commission, on 19th November, 2015,
submitted its Report on the matters covered in its Terms of Reference as
specified in the aforesaid Resolution dated the 28th February, 2014. 
2. The Government, vide Para 7 of the Resolution No. 1-2/2016- IC, dated
25th July, 2016, decided to
refer the allowances (except Dearness Allowance) to the Committee on
Allowances (the Committee). It was also decided that till a final decision
on allowances is taken based on the recommendations of the Committee, all
allowances will continue to be paid at existing rates in existing pay
structure, as if the pay had not been revised with effect from 1st day of
January, 2016.
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3. The said Committee submitted its Report on 27th April, 2017. The
Government, after consideration,has decided to accept the recommendations of the Commission on allowances
with 34 modifications as specified in Appendix I. The Statement showing the recommendations of the
Commission on allowances and the Government’s decision thereon is annexed
at Appendix II.
4. Some of the allowances paid to the Indian Navy which are also paid to
the Indian Coast Guard at
present have not been mentioned in the Report of the Commission. The
Government has decided that these allowances which are admissible to the
Indian Navy shall also be paid to the Indian Coast Guard at par with the
Indian Navy.
5. The rates in respect of 12 running allowances relating to the Ministry
of Railways shall be notified
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by the Ministry of Railways with the concurrence of the Ministry of
6. The revised rates of allowances shall be admissible with effect from the
1St July, 2017. 
Ordered that this Resolution be published in the Gazette of India,
Ordered that a copy of this Resolution be communicated to the Ministries
and/Departments of the Government of India, State Governments,
Administrations of Union territories and all other concerned.
R. K. CHATURVEDI, Jt. Secy. 
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