Higher HRA Rates Suggested for X, Y, Z Cities in 8th Pay Commission

Employee organisations have also asked for a revision of House Rent Allowance rates under the new pay commission. The All India NPS Employees Federation proposes an HRA of 36 percent for X‑category cities, 24 percent for Y‑category and 12 percent for Z‑category.

Some other unions have pushed the figures even higher, recommending 40 percent, 35 percent and 30 percent respectively. They further suggest that HRA should automatically rise whenever the Dearness Allowance is revised, keeping the housing component in step with inflation.

These HRA demands aim to provide a more realistic cost‑of‑living adjustment for government employees stationed in cities with varying rental markets.