Home Rent Allowance Rules for Central Government Employees

Part of Gross Salary- The Home Rent Allowance received by the government employees is a part of their Gross Salary.

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Eligibility- HRA is given to those Govt. employees who do not live in any government quarters. They live outside on rent.

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Amount of HRA- HRA is not a fixed amount but it is calculated on the basis of basic pay and city of residence.

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Categories of cities- Indian cities are divided into three categories to calculate HRA – X, Y and Z category cities.

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Classification of Cities for HRA- X Class - More than 50 Lakh Population Y Class - More than 20 Lakh Population Z Class- Below 20 Lakh Population

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Current HRA rates- For X Class cities - 27% of Basic Pay For Y Class cities- 18% of Basic Pay For Z Class cities- 9% of Basic Pay

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