NO NAC FOR HRA

No.2/5/2017-E.IIB

Government of INdia

MINISTRY OF DEFENCE

DEPARMENT OF EXPENDLTUR

Finance min Clarification on House Rent Allowance Dt. 5.3.2019

Finance Ministry issued clarification orders regarding dispensation of conditions of applying for Government Accommodation and furnishing of ‘No Accommodation Certificate’ for admissibility of House Rent Allowance.

The matter has been examined in this Department and in supersession of Para 4(a) of this Department’s O.M. No.2(37)-E.II(B)/64 dated 27.11.1965 read with para 1(1) of O.M. No.11011/1/E.II(B)/75 dated 25.02.1977 and to simplify the procedure relating to grant of House Rent Allowance to Central Government Employees, the President, in consultation with Ministry of Housing and Urban Affairs and the Staff Side of the National Council (J.C.M), is pleased to decide that the condtions of applying Government Accommodation and furnishing of ‘No Accommodation Certificat’ by Central Government employees to become eligible for House Rent Allowance, are despensed with for all places, in respect of General Pool Accommodation (GPRA) controlled by Directorate of Estates.

READ ORIGINAL COPY :- COPY

No Arrives only implementation - CG employees disappointed

House Rent Allowance (HRA)

HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities. As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than ₹5400, ₹3600 and ₹1800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of ₹18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA.

Recommendations in respect of some important allowances paid to all employees:

(i) Rate of Children Education Allowance (CEA) has been increased from ₹1500 per month / child (max. 2) to ₹2250 per month / child (max.2). Hostel Subsidy will also go up from ₹4500 per month to ₹6750 per month.

(ii) Existing rates of Special Allowance for Child Care for Women with Disabilities has been doubled from ₹1500 per month to ₹3000per month.

(iii) Higher Qualification Incentive for Civilians has been increased from ₹2000 – ₹10000(Grant) to ₹10000 – ₹30000 (Grant)