7th pay commission HRA update: The House Rent Allowance (HRA) guidelines for central government employees have been amended by the Finance Ministry’s Department of Expenditure. According to the recent update, some central government employees would no longer be eligible for HRA.
HRA is acceptable in reference to the ‘site of duty’ of government employees, according to the HRA rules.
Specific caes in which employee will not receive HRA:
(i) He/she shares government-provided housing with another government employee; or
(ii) He/she lives in housing provided by the federal government, state government, an autonomous public undertaking or semi-government organisation such as a municipality, port trust, nationalised banks, Life Insurance Corporation of India, and so on; or
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(iii) The central government employee has been assigned housing at the same station by the central government/state government/autonomous public undertaking/semi-government organisation, whether he/she resides in that housing or separately in housing rented by him/her.
“Government servants other than a government servant who is living in a house owned by him shall be eligible for HRA even if they share government accommodation allotted to other government servants…subject to the condition that they pay rent or contribute towards rent or house or property tax but without regard to the amount actually paid or contributed,” according to the rules.
(7th pay commission HRA update) HRA Divisions
HRA is intended for paid people who live in rental housing. It is separated into three sections: X, Y, and Z.
(i) ‘X’ denotes places with a population of 50 lakh or more. According to the 7th Pay Commission recommendations, HRA is set at 24%.
(ii) ‘Y’ denotes regions with populations ranging from 5 to 50 lakh. It is supplied at a rate of 16%.
(iii) ‘Z’ is assigned to areas with a population of less than 5 lakh. It is granted at a rate of 8%.
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