In a move that will benefit about 50 lakh central government employees and defence personnel, the Union cabinet on Wednesday approved the recommendations of the 7th Pay Commission for higher allowances, including house rent allowance (HRA).
The HRA that has been approved will be 24%, 16% and 8% of the new basic pay, depending on the type of city.
"The HRA will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 depending on the type of city and calculated at 30%, 20% and 10% of minimum pay Rs 18,000," a government statement said.
The HRA revision will benefit more than 7.5 lakh employees. HRA constitutes 60% of the total allowance of a government employee's pay...
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