House Rent Allowance: The government has revised the House Rent Allowance (HRA) rules, and as a result, government employees may not always get HRA. The guidelines have been updated by the Ministry of Finance’s Department of Expenditure (DoE).
All about House Rent Allowance
In order to cover the costs associated with living in a rented home, House Rent Allowance (HRA) is provided to salaried individuals. It falls within the X, Y, and Z categories.
‘X’ is for areas with a population of 50 lakh and more. As recommended by the 7th Central Pay Commission (CPC), HRA is given at 24%.
‘Y’ is for regions with population between 5 lakh and 50 lakh. It is given at 16%.
‘Z’ is given where the population is below 5 lakh. It is given at 8%.
No House Rent Allowance under these conditions
If the worker shares a government residence allocated to another government worker.
If he or she resides in a home provided by any of the following: central or state government, an independent public sector undertaking, or a semi-government organisation (municipality, port trust, nationalised banks, LIC etc.).
If the spouse of a government servant has been given a residence by any of the aforementioned entities in the same station as the government servant, and whether the employee stays in that accommodation, or separately on rent.
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