RBE No. 71/2017.

No. E(P&A)II-2017/HRA-7 New Delhi           , dated 19.07.2017.
The General Managers/CAOs,
All Indian Railways & Prod. Units etc,
Sub.:- Decision of the Government on the recommendations of the Seventh Central Pay Commission relating to grant of House Rent Allowance (HRA) to Railway employees.


Consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission relating to House Rent Allowance (HRA), the President is pleased to decide that in modification of Railway Board’s letter No. PC-65/HRA-1/3 dated 21.7.1965 as amended from time to time, letter No. E(P&A)II-
2008/HRA-10 dated 12.09.2008 and letter No. E(P&A)TI-2015/HRA-7 dated 24.09.2015, the admissibility ofHRA shall be as under:-
Classification of Cities/Towns         Rate of House Rent Allowance per month as a percentage of Basic pay only
X                                                                                                                           24%
y                                                                                                                             16%
z                                                                                                                               8%
2. The rates of HRA will not be less than~ 5400/-, 3600/- and 1800/- at ‘X’, ‘Y’ & ‘Z’ class cities respectively.

3. The rates of HRA will be revised to 27%, 18% and 9% for ‘X’, ‘Y’ and ‘Z’ class cities respectively when Dearness Allowance (DA) crosses 25% and further revised to 30%, 20% and 1 0% when DA crosses 50%.

4. The tenn “basic pay” in the revised pay structure means the pay drawn in the prescribed pay levels in the Pay Matrix and does not include Non-Practising Allowance (NP A) etc. or any other type of pay like special pay, etc.

5. In the case of running staff HRA will continue to be calculated on the basic pay plus 30% pay element till further orders.

6. The list of cities classified as ‘X’, ‘Y’ and ‘Z’ issued vide Board’s letter No. E(P&A)IT-2015/HRA-7 dated 24.09.2015, for the purpose of grant of House Rent Allowance is enclosed as Annexure to these orders.

7. Special orders on continuance of HRA at Delhi (‘X’ class city) rates to railway employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar (‘Y’ class city) rates to Jalandhar Cantt., at ‘Y’ class city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh (‘Y’ class city) to Panchkula which have been allowed to
vide Para ‘4’ of this Ministry’s letter No. E(P&A) II-2015/HRA-7 dated 24.09.2015 and S.A.S Nagar (Mohali) at par with Chandigarh (‘Y’ class city) vide Ministry’s letter No. E(P&A)II-2015/HRA-7 dated 12.05.2017, shall continue till further orders.

8. All other conditions governing grant of HRA under existing orders shall continue to apply.

9. These order shall be effective from 1st July, 2017.

10. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Salim Md. Ahmed)
Deputy Director/E(P&A)II,
Railway Board.

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