Whether DA (Dearness Allowance) will be merged with basic pay or stay separate is not yet clear but according to media reports DA may be reset.

As 8th Pay Commission is under discussion, many government employees are searching how much the basic salary and their House Rent Allowance (HRA) will increase.

Under the previous (7th) Pay Commission, the rates used to be 24%, 16% and 8% for X/Y/Z cities respectively. These were increased when the Dearness Allowance (DA) crossed 25% (when DA reached 28% in July 2021) to the current 27%, 18%, 9%.

How HRA Is Different As Per City Category?

For “X” category cities (metropolitan) it is 27% of basic pay.

For “Y” category cities (medium cities) it is 18% of basic pay.

For “Z” category (smaller towns) it is 9% of basic pay.

HRA And Fitment Factor

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