HRA for Central Govt Employees | Classification of cities for HRA as per 7th CPC

HRA for Central Govt Employees is also a very important part of the salary received by the government employees.

HRA full form or HRA stands for – Home Rent Allowance

Current HRA Rates-

Note: The rates of HRS will be revised to 30%, 20% and 10% when DA (Dearness Allowance) crosses 50%.

As you know that some important allowances are also part of the salary of a central government employee which are available to all the employees such as Dearness Allowance, Transport Allowance etc.

HRA for Central Govt Employees is one of these allowances , but it is not given as a part of salary of all government employees.

In this blog post, we are going to tell when HRA for Central Govt Employees is added to the salary and under which condition a government employee is not eligible for Home Rent Allowance.

Also, we will tell how the rate of HRA for Central Govt Employees is determined and on what basis the classification of cities of India has been done for calculation of Home Rent Allowance.

So, whether you are a current Central Government employee or simply curious about how this benefit works, read on to learn more!

But first of all we are going to tell what is the HRA for Central Govt Employees?

Read also:

Travelling Allowance for Government Employees

Dearness Allowance for Government Employees

What is HRA for Central Govt Employees or What is HRA Meaning

When a government employee is posted in a city where he does not have his own house, it is most likely that he is either living in a private house and paying rent or living in a government quarter.

If a government employee is living in a private house by paying rent, then in lieu of it, an allowance is given to him which is called Home Rent Allowance. Thus, HRA for Central Govt Employees is an important component of the compensation package given to a government servant in lieu of paying room rent. It is designed to help offset the cost of renting a home, and is calculated as a percentage of an employee’s basic salary.

But it has a fixed rate and this rate is fixed according to that city. It is not that whatever rent he is paying for that private house will be given to him by the government.

Indian cities have been classified by the Government of India to determine the rate of Home Rent Allowance and on that basis that government employee gets Home Rent Allowance.

But this Home Rent Allowance is not available to those government employees who live in any government quarters. Whether he is a government employee of any post or his posting in any city.

HRA Calculation 7th Pay Commission

As we have already told that any such government employee who lives in a private house is given HRA for Central Govt Employees at a fixed rate and it is added to salary every month.

That is, it is not given separately nor does that employee have to make any kind of claim for HRA for Central Govt Employees.

We are going to tell here that how to calculate the Home Rent Allowance that a government employee gets and whether it is available according to his post?

For this, we will first take a post as an example, for example, suppose he is freshly recruited in the post of Inspector in GST Office, then how much Home Rent Allowance will he get.

So first we will know the Basic Pay of that new GST Inspector according to the Pay Matrix of 7th Pay Commission.

As you would know that according to the 6th Pay Commission the Grade Pay of a GST Inspector is Rs.4600/-. According to the Pay Matrix of 7th Pay Commission, the Pay Level of 4600 Grade Pay is 7. In this way the Basic Pay of a new GST Inspector will be Rs.44900/-.  

At present the rate of HRA for X, YZ class cities is 27 percent, 18 percent and 9 percent respectively. Now we are assuming that the GST Inspector is posted in any X class city, then the Home Rent Allowance he will get will be –
HRA = 27% of Basic Pay = 27% of Rs.44900/- = Rs.12,123/-

If that GST Inspector does not live in a government residence, then Rs 12,123 will be added to his salary as Home Rent Allowance.

In this way the Home Rent Allowance is calculated for a government employee.

Classification of Cities for HRA

The Central Government has classified Indian cities into three categories i.e. classification of cities for HRA. This classification is based on population of those cities / area as per latest census report. The classification of cities for HRA is as follows

1. X Class Cities- Such cities come under this class whose population is more than 50 lakhs.
2. Y Class Cities- Such cities come under this class whose population is more than 20 lakhs and less than 50 lakhs.
3. Z Class Cities- Such cities come under this class whose population is below 20 lakhs.

A total of 8 cities come under X Class Cities, 79 cities under Y Class Cities and the remaining cities and union territories which are neither in X Class cities nor in Y class cities, come under Z Class Cities.

Click here to see the Implementation of recommendations of the Seventh Central Pay Commission relating to grant of HRA for Central Govt Employees.

Important Points of OM No.2/4/2022-E.IIB dated 30.12.2022

Areas where HRA for Central Govt Employees is admissible-

1. Home Rent Allowance is admissible with reference to the ‘place of duty’ of the Government servant, irrespective of whether Government servant is residing at that place or any other place.

2. For deciding the classification of ‘place of duty, the limits of the locality within which these orders apply, shall be those of the named municipality or corporation and shall include such of the suburban municipalities, notified areas or cantonments as are contiguous to the named municipality; or corporation or other areas as the Central Government may from time to time notify.

3. The instructions shall automatically apply/ cease to apply to areas which may be included within / excluded from the limits of the named UA or municipality or corporation by the State Government concerned, from the date of such inclusion/exclusion.

4. Staff working in Central Government establishments within a distance of 8 kilometres from the periphery of the municipal limits of a qualified city will be allowed House Rent Allowance at the rates admissible in that city even though they may not be residing within those municipal limits, provided that-

(i) A certificate in the prescribed format (as per Annexure-1) from the Collector/Deputy Commissioner having jurisdiction over the area, is obtained by the Administrative Ministry/Department concerned and referred to the Ministry of Finance, Department of Expenditure for initial sanction of HRA for a period of
3 years.

(ii) Further extensions for grant of HRA beyond the initial period of 3 years may be allowed by the Administrative Ministries/ Departments in consultation with their Financial Advisers and by the C&AG, in respect of staff serving under him.

(iii) Benefit of the concession of HRA may be extended to the employees working in a place which though a town panchayat is generally dependent for its essential supplies on a qualified city and is within the 8 kms. limit of the periphery of the qualified city.

(iv) HRA will also be payable to the Central Government employees within the area of the Urban Agglomeration(UA) of classified city at the rates admissible in the classified city. The existing provisions for the payment of House Rent Allowance under Paras.3.4 above, will, however, continue to be applicable only at places which are within 8 kilometres of municipal limits of classified cities, but which are not included within UA of any city, subject to fulfilment of usual conditions laid down and subject to issue of specific sanctions therefore as before 

(v) The certificate of Dependency may be obtained from the Collector in all cases where the grant of HRA under Para. 3.4 is proposed. In all cases where the Collector certified that the area in question depends for its essential supplies on the qualifying city even though there may be another municipal area within the 8 kms. radius, Government would consider on merits whether grant of House Rent Allowance in such cases would be justified.

Admissibility of HRA for Central Govt Employees

HRA for Central Govt Employees shall be admissible subject to the following conditions:

1. The allowance shall not be admissible to those who occupy General Pool Residential accommodation provided by the Government.

2. Where Government quarters are available for the staff of specified Departments or for specified categories of staff, the procedure for applying for accommodation for payment for HRA will be regulated under the rules of the Ministry/Department concerned for allotment of the accommodation.

3. HRA drawn by a Government servant, who accepts allotment of Government accommodation, shal be stopped from the date of actual handing-over of accommodation in immediate habitable condition to the Government servant. In case of refusal of allotment of Government accommodation, HRA shall cease to be admissible from the date of allotment of Government accommodation. In case of surrender of Government accommodation, the House Rent Allowance, if otherwise admissible, will be payable from the date of such surrender.

4. A Government servant debarred from alotment of Government accommodation due to unauthorized sub-letting, or for other breaches of rules, but excluding those covered by 4.3 above will be eligible for HRA during the period of such debarment.

5. Female Government servants residing in the Western House Hostel and the Working Girls’ Hostel, Delhi, or elsewhere in Government-run hostels are not entitled to House Rent Allowance. Government servants living in hostels run by Autonomous and semi-Government Organizations, which are not run on commercial lines (i.e., Central Government employees allotted hostel accommodation are not charged
market rent, but a subsidized rent), would not be entitled to HRA.

6. A Government servant, who, on transfer, has been permitted to retain Government accommodation at the old station on payment of normal rent or penal rent or retains Government accommodation unauthorizedly on payment of market rent, etc., will be entitled to HRA at the new station for the period upto 8 months from the date of his transfer.

7. A Government servant who was not in occupation of Government accommodation at his old station and who, on transfer, leaves his family behind at the old station because he has not rented a house or has not been allotted Government accommodation at the new station, will be eligible for House Rent
Allowance for a period of six months from the date of his assumption of charge at the new station till Government accommodation allotted to him at the new station. HRA in such cases shall be regulated as per the place of duty from the date of assumption of charge.

Note: HRA shall be admissible at the rate at which it was being drawn by him/her at the previous place of posting till the end of current academic of his/her child/children.

8. In either case, the grant of HRA under these provisions shall not be admissible beyond the date on which Government accommodation allotted to him/her at the new station.

9 During the period of transfer not exceeding 90 days, a Government servant shall draw HRA at the same rates at which he was entitled at the time of transfer. For periods of transfer exceeding 90 days, the rate of HRA shall be regulated with reference to the new place of posting. If a transfer, initially made for a period not exceeding 90 days, is later extended, rate of HRA shall be regulated with reference to new place of posting from the date of issue of orders extending the transfer beyond 90 days.

Conditions for drawal of HRA for Central Govt Employees

1. A Government servant shall not be entitled to HRA, if-

(i) he/she shares Government accommodation allotted to another Government servant; or

(i) he/she resides in accommodation allotted to his/her parents/ son/ daughter by the Central Government, State Government, an Autonomous Public Undertaking or semi-Government Organization such as a Municipality, Port Trust, Nationalized Banks, Life Insurance Corporation of India, etc; or

(ii) his/her spouse has been allotted accommodation at the same station by the Central Government/State Government/ Autonomous Public Undertaking Semi Government Organization such as Municipality, Port Trust, etc., whether he/she resides in that accommodation or he/she resides separately in accommodation rented by him/her

2 Government servants other than a Government servant who is living in a house owned by him shall be eligible for HRA even if they share Government accommodation allotted to other Government servants [excluding those mentioned in (5.1) above] or private accommodation of other Government servants [ including those mentioned in 5.1.() & (ii) above ] subject to the condition that they pay rent or contribute towards rent or house or property tax but without reference to the amount actually paid or contributed.

3 In cases where husband / wifel parents / children, two or more of them being Central Government servants or employees of State Governments, Autonomous Public Undertakings or semi- Government Organizations like Municipality, Port Trust, Nationalized Banks, Life Insurance Corporation of India, etc., share accommodation allotte to another Government servant, HRA will be admissible to only one of them, at their choice.

NOTE. The term "accommodation" includes the accommodation allotted to the employees of State Governments, Autonomous Public Undertakings, semi-Government Organizations such as Municipality, Port Trust, etc.

4. Drawal of HRA by husband and wife when both of them happen to be Government servants and are living in hired/ owned accommodation- HRA would be admissible to both as per their entitlement.

5. Reimbursement of rent to Government servants during their temporary stay in State Bhavans /Guest Houses/Departmental Guest Houses run by Central Government/State Governments/ Autonomous Organizations, etc.- The officials on their posting to the Centre and the Central Government officials on their transfer/posting to a new station, necessitating change of residence if they temporarily stay in State Bhavans/ Guest Houses/Departmental Guest Houses run by Central Government/ State Governments Autonomous Organizations, etc. may be reimbursed the amount of rent paid subject to fulfillment of the
following conditions

i) The official has applied for accommodation of his entitlement, but has not been allotted residential accommodation by the Government.

(ii) The concerned Guest House should be located at the place of posting of the official.

(iii) The official must have stayed in State Bhavans / Guest Houses/Departmental Guest Houses run by Central Government/ State Government/ Autonomous Organizations etc. and submit rent receipts in support of payment of rent.

(iv) Reimbursement of rent shall be admissible upto a maximum period of six months. 

(V) No HRA shall be admissible during this period.

Regulation of HRA in different circumstances

The drawal of House Rent Allowance in the following circumstances shall be regulated as under:

During Leave:

1. A Government servant will be entitled to draw HRA during leave at the same rates at which he was drawing these allowances before he proceeded on leave. For this purpose, leave means total leave of all kinds, as per CCS(Leave) Rules (including child care leave, extraordinary leave etc.) not exceeding 180 days and the first 180 days of the leave if the actual duration of the leave exceeds that period; but does not include terminal leave, whether running concurrently with the notice period or not.

When vacation or holidays are combined with leave, the entire period of vacation or holidays and leave should be taken as one spell of leave. HRA will be admissible during Leave Preparatory to Retirement (LPR) subject to submission of certificate that the employee concerned and/ or his family continues to reside at the same place/ same station.

2. In the case of Government servants who are originaly granted leave on medical certificate exceeding 180 days and have ultimately to retire from Government service on grounds of invalidity, the entire leave thus becoming leave preparatory to retirement, recovery of HRA already drawn need not be effected. Central Government servants who are originally granted leave on medical grounds or otherwise but do not join duty after expiry of such leave owing to death / invalidation during such leave may also be regulated in the same manner.

3. The drawal of HRA during periods of vacation or holidays whether combined with leave or not shall be regulated in the same way as during leave.

4. In cases, where a Government servant who is sanctioned leave, whether on medical grounds or otherwise, does not join duty after availing himself of such leave, and resigns, he shall not be eligible for HRA for the entire period of such leave. The Administrative Authority concerned shall ensure that the entire amount drawn on this account is recovered before resignation, etc., is accepted.

5. Drawal of HRA during the period of leave in excess of first 180 days availed of on grounds other than medical grounds mentioned in sub-para. (6.1.6) below shall be subject to furnishing of the certificate prescribed in Annexure-l.

6. The limit of 180 days shall be extended to 8 months for the purpose of the grant of these allowances in the case of Government servants suffering from TB, Cancer or other ailments during the period of their leave taken on medical certificates when such certificates are in the forms prescribed. It is immaterial whether the leave is on medical certificate from the very commencement or is in continuation of other leave as defined in () above.

In the case of employees suffering from TB, Cancer or other ailments, who remain on leave for a period exceeding 8 months, the grant of HRA for the period of leave beyond 8 months, may be decided by the respective Controlling Authorities irrespective of the period of leave involved so long as the medical certificate in the prescribed form is available

7. In case of Study Leave approved by Government of India, employee shall be eligible for HRA at the place of study without producing certificate mentioned in Annexure Il.

During Joining Time

During Joining Time, a Government sevant shall continue to draw HRA at the same rates at which he was drawing these allowances at the station from where he was transferred. Where, however, joining time is affixed to leave, joining time shall be added to the period of 180 days referred to in 6.1 above unless, in any case, it is otherwise expressly provided.

During Deputation Abroad

The officers going abroad on deputation, their HRA shall be regulated at the rates admissible to them from time to time at the station from where they proceeded abroad on deputation in the following manner

(i) An employee proceeding on deputation abroad will be eligible for HRA till such time as his family remains at the last place of his duty in India. In the event of an employee applying for family passage to the place of deputation abroad or for Transfer Traveling Allowance in respect of his family's journey from the headquarters in India to Home Town or any other station, he will not be required to refund the amount of HRA up to the date up to which the family actually resides at the last Headquarters of the employee in India.

(i) The drawal of HRA wil be subject to the production of certificate prescribed in Annexure llI.

During Training Abroad

A Government servant who is deputed for training abroad under the various training schemes sponsored by the Government of India or operated through non- official channels shall be entitled to draw HRA during the entire period of such training at the rates admissible to him from time to time at the station from where he was deputed abroad for training subject to the production of certificates prescribed in Annexure l.

Leave taken during the course of training or immediately after the completion of training abroad to cover stay- overs/stop -overs resulting in the absence of the trainees abroad beyond a period of six months cannot be treated as part of the period of training and as such the Government servant concerned will not be entitled to any HRA during the period of leave taken on training abroad irrespective of whether the leave falls within the first six months of the training or immediately after the completion of the training abroad.

During Training in India

A Government servant, whether permanent or temporary, who is sent on training in India, and whose period of training is treated as duty under FR 9 (6) (b), shall be entitled to draw during the entire period of such training, Compensatory (City) and House Rent Allowances at the rates admissible to him, from time to time, at either the place of training or the place of duty from where he proceeded on training, whichever are more favorable to him. For claiming the allowances admissible at the place of duty from where a Government servant proceeded to another station for training, he will be required to furnish
the certificate(s) prescribed in Annexure lIl.

NOTE. A Government servant who is allowed traveling allowance as on tour and draws daily allowance at the place of training will draw HRA at the rates admissible to him at his headquarters from where he proceeded on training.

During Suspension

The drawal of HRA to a Government servant under suspension shall be regulated with reference to FR 53 (1)6i)(b) and FR 54 subject to his furnishing certificate prescribed in Annexure ll for drawal of allowance for periods beyond 180 days from the date of suspension.

NOTE.- If the headquarters of a Government servant under suspension are changed in the public interest by orders of a Competent Authority, he shall be entitled to the HRA as admissible at the new station, provided he furnishes the requisite certificate with reference to such station.

To Re-employed Pensioners

The drawal of House Rent Allowance in the case of re-employed pensioners shall be regulated as indicated below-

i) In the case of officers whose pay plus pension exceeds the sanctioned maximum pay of the post, the allowances will be calculated on that maximum.

(ii) in the case of officers whose pay on re-employment in a civil post is fixed without taking into account the entire pension or a part thereof, the amount of pension so ignored shall also not be taken into account for the purpose of the grant of HRA.

(iii) In other cases, the allowances will be calculated on pay plus pension.

Persons whose leave terms are not regulated under the Fundamental Rules or the CCS (Leave) Rules, 1972:

1. Industrial and other employees, whose leave terms are regulated by special orders and not under the Fundamental Rules or the CCS (Leave) Rules, 1972, may be granted HRA during the first 40 days of leave at the same rates at which they were drawing these allowances before proceeding on leave. Where, however, under any special orders, such employees are eligible to draw these allowances for period of leave in excess of 40 days at it time, they will continue to be governed by those orders.

2. The limit of 40 days shall be extended to 180 days in the case of such employees suffering from TB/ Cancer/ other ailments during their leave taken on medical certificates when such certificates are in the forms prescribed. It is immaterial whether the leave is on medical certificate from its very commencement or it is in continuation of other leave.

The question whether the allowances may be paid to an Officer suffering from TB / Cancer or other ailments during leave on medical certificate exceeding 180 days shall be decided on merits by the Ministry/ Department in consultation with Financial Adviser concerned. Drawal of allowances beyond 180 days will be subject to the furnishing of certificate in Annexure Ill.

During Tour

For the period of Tour, A Government servant’s entitlement to these allowances shall be regulated with reference to his Headquarters.

Conclusion about HRA for Central Govt Employees

HRA for Central Govt Employees is an important part of the salary of any government employee. But this allowance is added to the salary of the employee when he does not live in a government residence.

If that government employee lives in a private house by paying rent, then he is given HRA. This HRA is given at a fixed rate which is decided by the central government.

At present the HRA rate for X, Y, Z class cities is 27 per cent, 18 per cent and 9 per cent respectively.

HRA for Central Govt Employees is calculated on the basis of Employee’s Pay Level and not according to his post. That is, the employee residing in any post is given HRA on the basis of his posting city.

The Central Government has classified Indian cities for HRA on the basis of population into X, Y and Z Class Cities and accordingly the HRA of a central employee is calculated.

FAQ about HRA for Central Govt Employees

Related posts:

10 Important Allowances for Government Employees Pay Fixation of a Government Employee 7th CPC LTC Rules for New Recruits in Central Government 7th CPC Salary Calculator, 2024 for Central Govt. Employees