Finmin Orders - Grant 0f Additional HRA To CG Employees

Grant of Additional House Rent Allowance to CG Employees – Finmin Order 14.8.2018

Mod Orders - 7th CPC House Rent Allowance (HRA) To Armed Forces Personnel

House Rent Allowance (HRA) to Armed Forces Personnel – MoD Orders dt. 11.10.2017

Implementation of 7th CPC Recommendations for grant of House Rent Allowance (HRA) to Armed Forces Personnel

No.3(1)/2015-D(Q&C)

Government of India

Ministry of Defence

New Delhi,

Dated 11th October, 2017

To

The Chief of the Army Staff

The Chief of the Naval Staff

The Chief of the Air Staff

Subject: Implementation of 7th CPC Recommendations for grant of House Rent Allowance (HRA) to Armed Forces Personnel.

Sir,

I am directed to say that consequent on the decisions of the Government on the recommendations of Seventh Central Pay Commission, the President is pleased to decide for grant of HRA to Armed Forces Personnel in partial modification of MoD letter No.10(55)/98/D(Q&C) dated 18th November, 2008 as amended from time to time that the admissibility of HRA shall be as under:

Classification of Cities/Towns	Rate of House Rent Allowance per month as a percentage of Basic Pay only
X	24%
Y	16%
Z	8%

2. The list of cities/towns classified as X, Y and Z vide Ministry of Finance, Dept. of Expenditure OM No.2/5/2017- E.II(B) dated 7th July, 2017 for the purpose of grant

of HRA is enclosed as Annexure to these orders.

3. The rates of HRA will not be less than Rs.5400/-, 3600/- & 1800/- at X, Y & Z class cities respectively.

4. The rates of HRA will be revised to 27%, 18% and 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) corsses 25 percent and further revised to 30%, 20% and 10% when DA corsses 50%.

5. The term “basic pay” in the revised pay structure means the pay drawn in the prescribed pay levels in the Pay Matrix and does not include Non-Practising Allowance (NPA), Military Service Pay (MSP) etc. or any other type of pay like special pay etc..

6. Special orders on continuance of HRA at Delhi eX’ class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar (‘Y’ class city) rates to Jalandhar Cantt. at “Y” class city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh (‘Y’ class city) to Panchkula, S.A.S. Nagar(Mohali) which have been allowed to continue vide Para ‘4’ of MoF O.M. No.2/5/2014-D.II(B) dated 21.07.2015 and O.M. No. 2/2/2016-E.II(B) dated 03.02.2017, shall continue till further orders.

7. Other terms and conditions governing ERA to Armed Forces will remain unchanged.

8. The allowances relating to CILQ. FAA and SNLQ henceforth stand abolished as a separate allowance. Eligible employees to be governed by the newly proposed provisions for Housing for Personnel Below Officers Rank (PBORs).

9. The revised rates of the above allowances Vi/ill be effected from 1st” July, 2017.

10. This issues with the concurrence of the Ministry of Defence (Finance/Works) vide their ID No.363/Fin/W-II/17 dated 10.10.2017.

Yours Faithfully,

sd/-

(Girish Chandra Srivastava)

Dy. Director

 Order Copy

Authority: www.mod.gov.in

House Rent Allowance To Defence Forces

House Rent Allowance to Defence Personnel

House Rent Allce. Matrix for House Rent Allce has been introduced. The Matrix is given below:-

An employee with dependents, during field posting or staying in Barracks as functional requirement will be eligible for accommodation for his dependents anywhere in the country.

* Provided government accommodation is not available for the dependents at Selected Place of Residence. If government accommodation is available, no HRA is payable.

** Reduced HRA means rate of HRA applicable reduced by 5 percent. However, the reduced amount cannot be less than the lowest rate of HRA applicable to Class Z cities/towns. Allowance is available provided employee is required to stay in barracks as a functional requirement and government accommodation is not available for the dependents at Selected Place of Residence. If employee is staying in barracks by choice or government accommodation is available at Selected Place of Residence, no HRA is payable.

@ Reduced HRA means rate of HRA applicable reduced by 5%. However, the reduced amount cannot be less than the lowest rate of HRA applicable to Class Z cities/towns. Allowance is available provided employee is required to stay in Barracks as a functional requirement. If employee is staying in Barracks by choice, no HRA is payable.

# Provided government accommodation is not available, else no HRA is payable.

Classification of Cities	Rate
X	24%  of   Basic Pay
Y	16%  of   Basic Pay
Z	8%  of   Basic Pay

Note :-  (a) HRA shall not be less than Rs 5,400 per month, Rs 3,600 per month and Rs 1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities respectively.

(b) HRA shall be revised to 27%, 18% & 9% of Basic Pay in X, Y & Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X, Y & Z cities when DA crosses 50%.

7th CPC - Committee Report Of The House Rent Allowance (HRA)

7Tth CPC - Committee Report Of The House Rent Allowance (HRA)

House Rent Allowance (HRA) : Report of the Committee on Allowances

House Rent Allowance (HRA) (Para 8.7.3-16)

Existing Provisions: HRA is paid @30, 20 and 10 percent for X class (50 Lakh & above), Y class (5 to 50 lakh) and Z class (below 5 lakh) cities respectively.

At present, in the case of those drawing either NPA or MSP or both, HRA is being paid as a percentage of BP+NPA or BP+MSP or BP+NPA+MSP respectively.

Recommendations of 7th CPC: It has been retained and rationalized. After applying a multiplication factor of 0.8, the rates have been revised downwards to 24 percent, 16 percent and 8 percent of the Basic Pay for X, Y and Z class cities, respectively.

The rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent. Add-ons like NPA, MSP, etc. should not be included while working out HRA.

Demands:

I. National Council (Staff Side), JCM: HRA may be retained @30%, 20% and 10% for X, Y and Z cities respectively as the Commission has taken unreliable statistics to determine HRA, which has been reduced by a multiplication factor of 0.8 to 24%, 16% and 8% for X, Y and Z cities respectively.

II. CAG, Civil Aviation, M/o Health & FW, M/o HRD – D/o of Higher Education, MEA, Coal, DAE, DRDO, Dep. Of Space, CVC: Retain the allowance at the existing rates.

III. M/o of Law & Justice- D/o Justice: Cities having population of more than 1 crore may be granted HRA @ 30%.

Analysis and Recommendations of the Committee: The Committee has the following observations on the recommendations of the 7th CPC on HRA:

(I) HRA rates have been revised downwards by applying the multiplication factor of 0.8 applied by the 7th CPC on all percentage- based allowances. This was done to neutralise the significant increase in the Basic Pay. All fixed allowances have only been given an inflation indexed increase by the 7th CPC. While the 7th CPC has not explicitly stated how the multiplication factor of 0.8 has been arrived at anywhere in the Report, it may be seen that factoring in the expected Dearness Allowance of 125% on 01.01. 2016 would have yielded a multiplication factor of 0.875 which may have been rounded off to 0.8.

(II) On the 7th CPC recommendation that the rate of HRA will be revised to 27%, 18% and 9% when DA crosses 50 percent and further revised to 30%, 20% & 10% when DA crosses 100%, the Committee is of the view that given the inflation rates since January 2016 and the RBI policy on inflation, the DA rates might not go beyond 50% in the next 10 years.

(III) While the rents for residential accommodation have not gone up significantly in the recent past and might also have fallen in some areas, the HRA at the rates recommended by the 7th CPC at the lower levels might not continue to be adequate as per the prevailing market rent.

In view of these observations, the Committee has deliberated upon the following three options which separately, or in combination, can be suggested by way of modifications to the 7th CPC recommendations:

Option (i): Having regard to submissions made before it stating that towards the later part of the ten year period, HRA compensation falls considerably short of requirement, the 7th CPC has recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent. However, considering the present inflation rate, the rate of increase of the Dearness Allowance and future inflation projections, it appears unlikely that DA rates will reach 100 % in the ten year period. Taking this into consideration, the Committee considered that the timing of the upward revisions in HRA rates proposed by the 7th CPC may be advanced as under:

This would have no immediate financial implication and the 1st revision, as per the current trend of increase in DA, is expected to occur in July, 2018. Accordingly, additional annual financial implication in July, 2018 will be approximately ₹1850 crore. The additional financial implication in the second, third and fourth revision will also be

approximately ₹1850 crore per annum.

Option (ii): Instead of advancing the full restoration of HRA rates, the Committee considered splitting the revisions proposed by 7th CPC as under:

The financial implication would be similar as in Option (i) except that the timing of the revision would undergo a change.

Option (iii): It has been pointed out that at the recommended rates, HRA at the minimum level might not be sufficient. The minimum HRA calculated at the entry level of Level 1for X, Y and Z category cities at the rates recommended by the 7th CPC will be ₹4320, ₹2880 and ₹1440 respectively. The Committee considered recommending that the HRA at the rates recommended by the 7th CPC may be subject to a floor which may be fixed at ₹5400, ₹3600 and ₹1800 per month, calculated at 30%, 20% and 10% of the minimum pay for X, Y and Z category cities respectively. This will benefit employees in Levels 1, 2 and 3.

The additional financial implication is estimated to be ₹ 385.00 crore and around 7.70 lakh employees shall be benefited. After a detailed consideration of the above options, the Committee recommended that either only option (iii) or option (iii) in combination with option (ii) be accepted. A final decision in this regard may be taken by E-CoS.

Authority: www.doe.gov.in

REPORT COPY

7th CPC House Rent Allowance - Finance Ministry

7th CPC House Rent Allowance – Finance Ministry issued orders with Classification of Cities]

Minimum HRA Calculation will benefit only few thousand employees – Confederation

Minimum HRA Calculation will benefit only few thousand employees – Confederation

“Decision of the Govt. to retain minimum HRA of 5400, 3600 and 1800 as 30, 20 & 10% of minimum pay of 18,000. It will not benefit 7.5 lakhs employees in lower level 1, 2 and 3. It will benefit only few thousand employees.”

FALSE PROPAGANDA & UNFOUNDED CRITICISM BY SUPPORTERS OF NDA GOVERNMENT’S DECISION ON ALLOWANCES

FALSE PROPAGANDA & UNFOUNDED CRITICISM BY SUPPORTERS OF NDA GOVERNMENT’S DECISION ON ALLOWANCES

Immediately on announcement of Govt’s decision on Allowances a well-orchestrated propaganda was unleashed by the NDA Govt through media and its political machinery and also through some organizations and employees who supported the Government’s decision. The crux of the propaganda is as follows :-

1) It has been decided by the Government that HRA shall not be less than 5400, 3600 & 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 18,000-. This will benefit more than 7.5 lakhs employees belonging to pay level 1,2, and 3.

2) It is because of the JCM Staffside Federations who opposed and rejected the HRA rate recommended by Pay Commission, the employees have lost one and half years arrears of allowances. Government was ready to implement HRA and allowances from 01-01-2016 along with Revised Pay.

3) Even in the past Revised HRA and other Allowances were not given from the same date. HRA and other Allowances are implemented from a later date without retrospective effect.

The propaganda and criticism, though not succeeded, should not go uncountered. This is part of a deliberate attempt by the Govt. and its political machinery to misguide the general public and employees.

The following facts will reveal the hollowness of the propaganda of the Govt, and the criticism of those who supports the Govt’s decision.

(1) More than 7.5 lakhs lower level employees ( in pay level 1, 2 and 3) will be benefited due to the decision of the Govt. to retain minimum HRA of 5400, 3600 and 1800 as 30, 20 & 10% of minimum pay of 18,000-.

It will not benefit 7.5 lakhs employees in lower level 1, 2 and 3. It will benefit only few thousand employees.

In Pay level – I the starting pay is 18,000-. After getting eight (8) increments (eight years service) pay will become 22,800-. An employee drawing 22,800- will get HRA above 5400, 3600, 1800 even if the HRA is 24% (5472) 16% (3648) and 8% (1824).

In Pay level – 2 the starting pay is 19,900- After getting five increments (5 years service) pay will become 23,100-. The official will draw 5544 (24%) 3696 (16%) and 1848 (8%) even if the minimum 5400, 3600, 1800 is not retained.

In Pay level – 3 the starting pay is 21,700-. After getting 2 increments the pay will become 23,100- . 24% (5544), 16% (3696) and 8% (1848) will be above 5400, 3600 and 1800-.

From the above it can be seen that only those officials below 8 years service in Pay level – 1, below 5 years service in Pay level – 2 and 2 years services in Pay level – 3 will be benefited by the decision of the Govt to retain 5400-, 3600- and 1800- at level 1, 2 and 3 as minimum HRA at X, Y and Z class cities respectively. How many central Govt employees below 8 years service in level -1 and below 5 years service in level -2 and below 2 years service in level – 3 will be working in the Central Govt departments as on date. Only few thousands. All others in level -1,2 and 3 will draw more than 5400-, 3600- and 1800-even if HRA is 24%, 16% and 8%. This being the reality, Govt through its press release given to media made false propaganda that 7.5 lakh employees will be benefited by the Govt’s decision !!! And those who welcomed the Govt’s decision are repeating the same lies.

(2) It is because of the Federation leaders representing JCM National Council Staffside who opposed the HRA rate recommended by 7th CPC, employees lost one and half year arrears.

What is real fact?

Every time when Pay Commissions submit its report to Govt, Implementation Committee or Empowered Committee is constituted by the Govt to examine the recommendations of the CPC and submit report to the Govt for acceptance by Cabinet. The implementation Committee or Empowered Committee will call for suggestions / modifications to the CPC recommendations from all organizations including National Council JCM Staffside. This time also Govt and the Implementation Committee followed the same procedure.

Accordingly, National Council JCM Staffside submitted detailed memorandum to Govt and Implementation Committee / Empowered Committees, seeking 26 modifications in the recommendations including Minimum Pay, Fitment formula, Allowances including HRA, Transport Allowance, Advances, MACP conditions, CCL conditions etc.,. The JCM Staffside also presented their view points before the Implementation Committee headed by Joint Secretary and Empowered Committee headed by Cabinet Secretary. Suppose the JCM Staffside leaders / Federations decides not to submit any memorandum seeking modifications in the retrograde recommendations of the 7th CPC before the Implementation Committee / Empowered Committees and keep quite ( as argued by those who criticize the leaders and support the 7th CPC recommendations), what will be the reaction of the employees ? Will they not blame the leaders for silently supporting the Govt for implementing all the retrograde and negative recommendations of the 7th CPC ?

Inspite of JCM Staffside requesting for modifications the Cabinet on Pay Scale meeting held on 29-06-2016 decided to accept the recommendations of the 7th CPC without any modifications, rejecting the modifications requested by the Staffside. Cabinet also decided to refer all the allowances including HRA to a Committee headed by Finance & Expenditure Secretary.

Cabinet on 29-06-2016 has not decided to grant 24%, 16% and 8% HRA recommended by 7th CPC. Then where is the question of accepting or rejecting the decision of the Govt when there was no such decision by the Cabinet.

Not only JCM Staffside Federations almost all the Unions / Federations / Associations have submitted memorandum to Govt seeking modifications in the retrograde recommendations of 7th CPC. What is wrong in it ? The fact is that Govt deliberately constituted the Allowance Committee and referred HRA and other Allowances to the Committee to delay and deny the arrears from 01-01-2016. Instead of protesting against the Govt’s decision (that is what Confederation has done), those who are desperately trying to turn the anger and resentment of the employees against Unions / Federations who demanded modifications, are bound to fail, as Central Govt employees are not that much fools to believe that propaganda.

(3) Even in the past, HRA and Allowances were not given retrospective effect.

Govt and those who welcomed and thanked Govt for its decision on allowances are continuously repeating the argument that in the past also allowances were not given retrospective effect from the date of Revision of Pay. But what is the actual fact?

In the past, revised allowances including HRA were granted from the month / next month of notification of Revised Pay Rules. Even then JCM Staffside has not welcomed or thanked the Govt but strongly protested and demanded grant of allowances from the same date from which Revised Pay is implemented. Even if the old practice is taken as precedence, this time employees have every right to get revised allowances including HRA from 01-07-2016 as Revised (Pay) Rues was notified on 25-07-2016. Those who welcomed the Govt’s decision are consciously and deliberately hiding this fact as many employees do not know what has happened in the past.

The NDA Govt and its political machinery has made this type of propaganda when the Cabinet approved the recommendations of Pay scales recommended by the 7th CPC on 29-06-2016 without any modifications. At that time the propaganda was “big bonanza” to Central Government employees. This time also the same method of propaganda is adopted and the unfortunate part of it, is that some of our friends representing employees too contributed to such a false and baseless propaganda.

Yours comradely, 

sd/-

(M.KRISHNAN)

Secretary General

Confederation

Mob&whatsapp:09447068125

E-mail:mkrishnan6854@gmail.com

Source: http://confederationhq.blogspot.in/

7th CPC HRA Enhanced Pay Scales with Profit for 3 Levels

7th CPC HRA Enhanced Pay Scales with Profit for 3 Levels

7th Pay Commission House Rent Allowance Enhaned Pay Scales in three Levels with Profit

On 28.6.2017, the Union Cabinet Charied by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modification. 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 Rs.5400, Rs.3600 and Rs.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.

The below table describes the details of profit and the benefit pay scales…

Click To View The Table

Enhanced HRA benefit only 15 Slabs for lower levels

Enhanced HRA benefit only 15 Slabs for lower levels

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.

The below table shows the benefit basic pay in 1, 2 and 3 Levels

Grant of House Rent Allowance (HRA) to Railway employees

Grant of House Rent Allowance (HRA) to Railway employees

Grant of House Rent Allowance (HRA) to Railway employees posted at S.A.S. Nagar Mohali at par with Chandigarh rates.

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

RBE No.45/2017

No.E(P&A)II-2015/HRA-7

New Delhi, dated 12.05.2017

The General Managers(P)/CAOs,
All Indian Railways and Production Units etc.

Sub: Grant of House Rent Allowance (HRA) to Railway employees posted at S.A.S. Nagar Mohali at par with Changigarh rates.

The question of grant of House Rent Allowance (HRA) at rates admissible in the classified city of Chandigarh (‘Y’ class) to the Railway employees posted at Mohali has been considered in Board’s office in consonance with instructions of Ministry of Finance and the President is pleased to decide that the Railway employees whose place shall be entitled the limits of the notified area committee of S.A.S. Nagar Mohali shall be enttiled to draw HRA at the rates admissible within the classified city of Chandigarh.

2. The grant of HRA under these orders shall be regulated in accordance with the conditions laid down in this Ministry’s letter No.PC-66/HRA-1/21 dated 26.07.1967 as amended from time to time.

3. These orders shall take effect from the date of issue of this letter.

4. This issues with the concurrence of Finance Directorate of Railway Board.

sd/-

(Salim Md.Ahmed)

Deputy Directory/E(P&A)II,

Railway Board.

Authority: http://www.indianrailways.gov.in/

Issue of Admissibility of HRA – Railway Board Orders

Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation.

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

RBE No.23/2017

New Delhi, dated 16.03.2017

No.E(P&A)II-2015/HRA-6

The General Managers(P)/CAOs,
All Indian Railways
and Production Units ect.

Sub: Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation.

A reference from North Western Railway was received for clarification on the issue of admissibility of HRA in the event of non-acceptance/surrender of railway residential accommodation by a railway employee. The matter was examined and considered in this office in the light of policy guidelines n the issue in consultation with the Finance Directorate of Railway Board. In this connection, it is stated that the provisions of letter No.E(P&A)II-87/HRA-15 dated 16.05.1988 still hold good regarding admissibility of House Rent Allowance (HRA) in the event of non-acceptance/surrender of Railway residential accommodation. However, refused by a Railway servant of a quarter of a different class from that for which he is eligible shall not constitute refusal for the purpose of these orders unless he has the option to apply for accommodation of a class next below the one to which he is entitled by virture of his emoluments and he refuses such accommodation when allotted on the basis of his application.

2. This issues with the concurrence of the Finance Directorate of the Mininstry of Railways.

sd/-

(Salim Md.Ahmed)

Deputy Director/E(P&A)II,

Railway Board

Click to view the order

Authority: http://www.indianrailways.gov.in/

S.A.S.Nagar Mohali For Grant Of HRA At Par With Chandigarh

Regarding grant of House Rent Allowances at Chandigarh rates to Central Government Employees Posted at S.A.S. Nagar Mohali.

No.2/2/2016-E.II(B)

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, 3rd February, 2017

OFFICE MEMORANDUM

Subject: Regarding grant of House Rent Allowances at Chandigarh rates to Central Government Employees Posted at S.A.S. Nagar Mohali.

The undersigned is directed to refer to this Department’s O.M.No.2(37)/E.II(B)/93 dated 13.10.1993 regarding grant of House Rent Allowances (HRA) to the Central Government Employees posted within the limits of the Notified Areas of S.A.S.Nagar Mohali at par with Chandigarh.

2. References have been received from various Ministries/Departments regarding the rates of HRA admissible at S.A.S.Nagar Mohali. The matter has been considered and it has been decided with the approval of the competent authority that the special dispensation allowed to S.A.S.Nagar Mohali for grant of HRA at par with Chandigarh allowed vide the O.M. dated 13.10.1993, shall continue to be admissible further.

3. Hindi version is attached.

sd/-

(A.Bandyopadhyay)

Under Secretary to the Government of India

Authority: http://finmin.nic.in/