HRA Other Allowances: 8 Major Changes in HRA by 7th Pay Commission

New revisions in HRA ( House Rent Allowance) and other allowances will be effective from 1 july 2017. This will benefit more than 7.5 lakh employees.

Main Takeaways from Cabinet Meet on 7th Pay Commission:

  1. HRA to be paid at 24%, 16% and 8% respectively for X,Y and Z Cities.
  2. HRA will be calculated on 30%, 20% and 10% of minimum pay of Rs.18000. (X Cities = Rs.5400, Y Cities = Rs.3600, Z Cities = Rs.1800).
  3. 7th pay commission recommend revision of HRA when dearness allowance (DA) reaches 50% & 100%. The Govt. decided to revise when DA crosses 25% and 50%.
  4. Siachen Allowance has increased from Rs.14000 to Rs.30000 for soldiers and Rs 21,000 to Rs 42,500 for officers for extreme risk and hardship.
  5. Rs.1000 per month for pensioners as fixed medical allowance.
  6. Constant Attendance Allowance on 100 per cent disablement for pensioners increased from Rs 4,500 to Rs 6,750 per month.
  7. Operation Theatre allowance increased to Rs.540 per month.
  8. Nursing allowance increased to Rs.7200 per month for Nurses and Ministerial staff at Hospitals.