One of the biggest benefits for central government employees is of House rent allowance (HRA). Now, the good news is that, Centre has said if a city has been upgraded on the basis of its population, the HRA of the central government employees living there will be increased.
Hence, by this decision Centre has removed all confusions related to this allowance.
Here we will explain that how HRA will be calculated for CG employees living in the cities of different category.
As per the information by Harishankar Tiwari, former President, AG Office Brotherhood, Allahabad and Assistant Secretary-General of All India Audit and Accounts Association, the Central government has revised the HRA after implementing 7th Pay commission. There were 3 categories i.e. X, Y and Z for distribution of this.
The cities of X category have population of more than Rs 50 lakhs, and the government servants living there get maximum of 24% HRA per month. However, in the Y category cities, the HRA is 16 percent, and for Z category cities it is 8%.
Adding to it, the Finance Ministry circular stated that if a city has been upgraded on the basis of its population, the HRA of the government employee living there will be increased. The categories of different cities under 7th Pay Commission based HRA have been decided on the basis of census 2011.
Interestingly, the government has also made upgradation of the cities as per the report of their agencies, and the same has also been found mentioned in the circular issued by the Finance Ministry.
