Central government employees are expecting higher house rent allowance (HRA) under the 8th Pay Commission, which is currently in the consultation phase ahead of its implementation. HRA is a large component of a central government employee’s salary and varies depending on the category of the city in which the employee is posted.
Under the 7th Pay Commission, HRA was initially fixed at 24%, 16%, and 8% of the basic pay for employees posted in X, Y, and Z category cities, respectively. However, these rates were raised to 30%, 20%, and 10% when dearness allowance (DA) crossed 50% in January 2024.
