Comprehensive Guide on House Rent Allowance (HRA) for Central Government Employees

 

Comprehensive Guide on House Rent Allowance (HRA) for Central Government Employees

The AN-XIV Compendium dated 20 January 2023, issued by the Controller General of Defence Accounts (CGDA), consolidates all instructions issued by the Ministry of Finance regarding the grant of House Rent Allowance (HRA) to Central Government civilian employees, including those under Defence Services Estimates. This Compendium supersedes earlier orders communicated through O.M. No. 24(22)/E.II(B)/2022 dated 30 December 2022.


1. Definition and Scope

HRA is payable to Central Government employees to compensate expenditure incurred on rental accommodation at the place of duty. It is calculated as a percentage of Basic Pay (Pay in the Pay Matrix as per 7th CPC) and excludes any special pay or allowances.

Family Definition:

For the purpose of HRA, “family” includes:

  • Spouse,

  • Children,

  • Dependent parents and minor siblings,

  • Other dependent family members whose monthly income does not exceed ₹9,000 (excluding DA).

Same Station Criteria:

HRA is admissible for accommodation located:

  • Within municipal limits of the duty station,

  • In adjoining urban areas forming a contiguous urban agglomeration,

  • Within 8 km of municipal limits, subject to certification by the District Collector.


2. Classification of Cities and Rate of HRA

HRA is admissible based on the classification of the duty station as per the latest Census.

CategoryPopulation CriteriaHRA RateRate when DA > 25%Rate when DA > 50%Minimum HRA
X50 lakh & above24%27%30%₹5,400
Y5 to <50 lakh16%18%20%₹3,600
Z<5 lakh8%9%10%₹1,800

Note: Urban Agglomerations and adjoining dependent areas may be recognized for the purpose of HRA, subject to verification and certification under Annexure-I for an initial period of three years, extendable by the Ministry/Department concerned.


3. Admissibility Provisions

ConditionAdmissibility
Occupying General Pool AccommodationNot admissible
Staying in spouse/parent government-allotted accommodation (Central/State/PSU/Autonomous body)Not admissible
Residing in private rented or owned accommodation (both spouses are Govt. employees)Admissible to both, subject to declaration
Allotted Government accommodation becomes habitableHRA to be stopped from the date of occupation
Surrender of Government accommodationHRA resumes from the date of surrender
Debarred from Govt. quarters due to sub-lettingStill eligible for HRA

Employees residing in their own house or in houses owned by close relatives or other government employees are eligible for HRA, provided they submit proofs of rent paid or contribution towards maintenance/property tax.


4. HRA During Transfer, Leave, Training, Suspension, and Deputation

SituationRegulation
Transfer to another station without allotment of Govt. accommodationHRA admissible at old station for 6 months (extendable to 8 months)
Deputation/Training in India (duty)Higher rate of HRA (origin or training station) admissible
Deputation/Training AbroadHRA admissible at origin station if family continues to occupy accommodation with Annexure-III certification
SuspensionHRA admissible at Headquarters rate; beyond 180 days subject to certificate
Joining TimeHRA admissible at old duty station; duration counted within 180-day leave limit
Study Leave AbroadHRA admissible without additional certificate
Leave (all types including CCL)Admissible for initial 180 days; extendable up to 8 months for specific medical conditions (TB, Cancer, etc.) with medical proof
Official TourHRA continues at Headquarters rate
Re-employed PensionersHRA admissible on pay plus pension (subject to maximum limit); ignorable pension not counted

5. Certificates and Documentation

Mandatory Documents for Claiming HRA:

AnnexurePurposeCertification By
Annexure-IIDeclaration regarding hired/owned accommodation, spouse status, and non-occupation of Govt. quartersEmployee
Annexure-ICertification for dependency of accommodation located within 8 km of city limitsDistrict Collector
Annexure-IIIProof of continued residence for extended leave, deputation, training or foreign postingCompetent Authority

Submission Authority:

  • Gazetted Officers: Submit to respective Accounts Officer.

  • Non-Gazetted Employees: Submit to Head of Office/Drawing and Disbursing Officer (DDO).

Drawing and Disbursing Officers must verify the eligibility of employees and certify compliance before passing HRA claims.


6. Important Compliance Conditions

✔ HRA is linked with the duty station, not the place of residence.
✔ Suburban, cantonment or adjoining municipal areas contiguous to the main city are treated as same station.
✔ Employees residing in Government hostels or in General Pool housing are not eligible.
✔ Both husband and wife employed in Government service must declare their eligibility status separately.
✔ False declarations or non-compliance may lead to recovery and disciplinary action.


Conclusion

The applicability of HRA is governed by multiple factors including duty station, accommodation status, certification requirements, and compliance with admissibility rules. All employees must ensure timely submission of prescribed forms and abide by instructions issued under the AN-XIV Compendium and relevant Office Memoranda.

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