Complete Information On House Rent Allowance(H.R.A) and 10th Pay Revision Commission (RPS-2015) Recommendations: The House Rent Allowance is introduced in 1969 to Government employees to avoid the additional burden on employees by way of higher rents.
IN PRC 1969
In 1969 House Rent Allowance based on the twin criteria of population of cities / towns and the pay level of the employee was established.
In 1975 apart from the large cities and towns a small amount was also given to those living in sub taluk, taluk and municipal towns.
By the time the PRC 1978 was constituted, Hyderabad and four other major cities were classified into one group and the House Rent Allowance was fixed at the rate of 15% of the basic pay subject to a maximum of Rs.400/- per month.
By 1986, the HRA was being paid at 20% in all cities with a population of above 2 lakhs i.e., Hyderabad and 9 other towns. Employees at Tirupati were also declared eligible for receipt of 15% as a special case. In respect of other specified towns with a population 50,000 above and below 2 lakhs, HRA was fixed at 7.5% and in all other places it was at 4% of basic pay.
Subsequently, the quantum of House Rent Allowance payable to Government employees in certain places was revised from 1st July 1986. In 14 District headquarters, the HRA was revised to 12.5% of basic pay and for other places it was fixed at 10% of basic pay.
The 1993 PRC, recommended payment of HRA at 16% in 12 major towns including the twin cities, 10% in respect of 13 district headquarters and for the remaining places 8% of basic pay.
All this was subject to a ceiling of Rs.1,000/‐ p.m.
Government subsequently revised the percentage rates of 20%, 12.5% and 10% respectively and also the ceiling limit w.e.f. 1.1.1994.
The PRC 1999 recommended 20% of basic pay for those employees who are residing in cities / towns where the population is 2 lakhs and above.
For those employees who are residing in District Headquarters and other municipal towns other than the above cities,the HRA was fixed at 12.5%, where the population is more than 50000 but below 2 lakhs.
In respect of other places the payment of HRA was fixed at 10% of basic pay(where the population
is less 50000).
All of them were subject to a maximum of Rs.2,000 per month.
The PRC 2005 continued the pattern adopted by the PRC 1999 but had recommended enhancing the ceiling to Rs.3,000/‐ which was raised later to Rs.4,000/‐ per month by the O.M.C.
Subsequently, based on the declaration of the Hyderabad city as Greater Hyderabad Municipal Corporation and in consequence of the population having crossed more than 50 lakhs, the Government of India classified Hyderabad as A1 City.
Government of Andhra Pradesh have also declared Hyderabad as A1 City and the employees working in Greater Hyderabad Municipal Corporation were made eligible for drawal of HRA at 30% of basic pay, subject to maximum of Rs.6,000/‐ vide G.O. (P) No.10, Finance (PC‐I) Department, dt.17.1.2008.
NOTE: These rates of HRA are also extended to the places located within the periphery of 8 kms.
The 9th P.R.C recommended four grades and the rates of HRA admissible to the employees
Grade-I: At the rate of 30 % of the Basic Pay for Hyderabad and Secunderabad classified as A1 cities.
Grade-II: At the rate of 20% for cities with population exceeding 2 lakhs.
Grade-III: At the rate of 12.5% for cities with population exceeding 50,000 but below 2 lakhs.
Grade-IV: At the rate of of 10% for remaining places.
NOTE: vide G.O.Ms.No.59, Finance(P.C.I) Department, dated 11/04/2011, H.R.A.Rates have been Revised in Grade-III and Grade-IV category.
In Grade-III: At the rate of 14.5% for cities with population exceeding 50,000 but below 2 lakhs.
In Grade-IV: At the rate of of 12% for places with population below 50,000.
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