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HRA Rates for Central Government Employees: X, Y and Z Cities

Central Government civilian employees in the 7th CPC pay structure who are eligible for HRA. Railway and Armed Forces personnel have had separate HRA orders.Checked against official documents on 4 Oct 2026

Short answerHouse Rent Allowance (HRA) for central government employees is 30% of basic pay in X class cities, 20% in Y class cities and 10% in Z class cities from 1 January 2024. These rates applied under DoE OM No. 2/5/2017-E.II(B) once DA reached 50% on that date. HRA depends on your headquarters city.

Current HRA Rates

City class HRA rate (from 1 January 2024)
X 30% of basic pay (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B))
Y 20% of basic pay (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B))
Z 10% of basic pay (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B))

The 2017 HRA order already provided these rates for the stage when DA crosses 50% (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B)). DA reached 50% from 1 January 2024 (DoE OM No. 1/1/2024-E-II(B) dated 12.03.2024), so these rates apply from that date (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B)).

No separate fresh order was needed. The Department of Posts recorded this as the Department of Expenditure's position and listed HRA among the DA-linked allowances raised from 1 January 2024 (DoP letter PP-08/2/2021-PAP-DOP dated 05.06.2024).

What X, Y and Z Cities Mean

The X, Y and Z classes were introduced in 2008. Old A-1 cities became X; A, B-1 and B-2 cities became Y; and C class and unclassified places became Z (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, para 2, PDF p. 2). The population of the city's urban agglomeration was used for the classification (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, para 2, PDF p. 3).

In the 2008 list, X cities were Hyderabad (UA) (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, Annexure, PDF p. 4), and Delhi (UA), Bengaluru (UA), Greater Mumbai (UA), Chennai and Kolkata (UA) (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, Annexure, PDF p. 5). Every place not listed as X or Y is Z (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, Annexure Note, PDF p. 5).

The same order kept special treatment for some towns: Faridabad, Ghaziabad, NOIDA and Gurgaon get X class rates, and Jalandhar Cantt., Shillong, Goa and Port Blair get Y class rates (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, para 6, PDF p. 4).

This list comes from the 2008 order, which is the latest city list in our sources. City classification can be revised by later orders, so confirm your city in the current Department of Expenditure list.

Who Gets HRA and When

  • Headquarters decides the rate. HRA is admissible with reference to your headquarters, even if you live in a nearby village outside the city limit (KVS Audit FAQ, Q.5).
  • Own house. You can draw HRA even if you live in your own house (KVS Audit FAQ, Q.7).
  • Sharing your spouse's government quarter. You are not eligible for HRA if you share accommodation allotted to your spouse (KVS Audit FAQ, Q.6).
  • Child Care Leave. HRA during CCL beyond the first 180 days, if otherwise admissible, can be drawn with the certificate prescribed in para 8(d) of the OM dated 27.11.1965 (KVS Audit FAQ, Q.9).

Where to Check

The governing order is Department of Expenditure OM No. 2/5/2017-E.II(B) on HRA, read with the DA order of 12 March 2024 (DoE OM No. 2/5/2017-E.II(B) read with OM No. 1/1/2024-E-II(B)). The city classification and special rates for satellite towns are in MoF OM No. 2(13)/2008-E.II(B) dated 29 August 2008 (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, paras 2 to 6, PDF p. 2).

The 2008 order said separate HRA orders would be issued for Armed Forces personnel and Railway employees (MoF OM No. 2(13)/2008-E.II(B) dated 29.08.2008, para 10, PDF p. 4). KVS, NVS and Delhi Police staff should also check their employer's circulars on HRA.

Related Questions

What is the HRA rate for X class cities now?

It is 30% of basic pay from 1 January 2024, the date DA reached 50%, under DoE OM No. 2/5/2017-E.II(B).

Did the government issue a new order to raise HRA in 2024?

No separate order was needed. The Department of Posts recorded the Department of Expenditure's position that the increase applied automatically once DA reached 50%.

Can I claim HRA if I live in my own house?

Yes. The KVS audit FAQ confirms that an employee living in his or her own house is eligible for HRA.

Is HRA based on where I live or where I work?

HRA is decided by the classification of your headquarters, even if you live in a nearby village outside the municipal limit.

Official Sources

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This article explains the official rules as published; it is not legal advice. Check the cited document, and your own department's orders, before acting.