According to the new rules implemented, now only some center employees will be eligible for House Rent Allowance. Actually, the Central Government provides the facility of house rent to its employees to live in a rented house, but now the Ministry of Finance under the Central Government has made some updates in the rules of HRA. This change has been made by the Department of Expenditure (DoE) of the Ministry of Finance.

These are the new rules

According to (DoE), the House Rent Allowance (HRA) rules for government employees have been updated. As per the updated rules, a government servant will not be eligible for HRA in certain cases. As per the new rule in force, an employee will not be entitled to HRA if he shares a government accommodation allotted to another government employee. That worker will not get the house rent of the government.

Further, as per the new rule, if an employee is staying with his parents/son/daughter in the accommodation allotted by the Central, State Government, Autonomous Public Sector Undertaking and Semi-Government organization like Municipality, Port Trust, Nationalized Bank, LIC etc. If he is living together then he too will not get the house rent.

Husband wife will not get house rent even at government residence

If the spouse of a Government Servant resides in the same station as the Government Servant in accommodation provided by any of the above institutions or separately, he/she shall not be entitled to HRK. In this situation, the government will not give house rent to that employee.

Housing allowance is available in three categories

The central government is for salaried people who live in rented houses and is divided into three categories for housing related expenses. These three categories are X, Y and Z. The ‘X’ category is for areas with a population of 50 lakhs and above. As per the recommendation of the Seventh Central Pay Commission (CPC), HRA is given at 24%. In ‘Y’ category, the government provides 16 per cent house rent for areas with a population between 5 lakh and 50 lakh. While in the ‘Z’ category, the government provides 8 percent house rent in areas with a population of less than 5 lakhs.

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If a salaried person lives in a rented house, he gets house rent allowance. Tax exemption is also available on HR. House rent allowance is a significant part of the salary.

The Finance Ministry has informed about the changes in the HRA rules of central government employees. In such a situation, if you are an employee of the Central Government, then you should know that now what conditions you have to follow to get HRA. According to the new rules, now if the employee shares the government accommodation given to another government employee, then they are not entitled to get HRA.

Even if the employee’s parent, son or daughter has been allotted a house by the Central or State Government, Public Sector Undertaking and Semi-Government Organization like Municipal Corporation, Port Trust, Nationalized Bank, LIC etc. and he is living in it Now house rent allowance will not be available.

HRA will not be available even if the husband or wife has got a government
house. Will not pay rent.

What is HRA

HRA or House Rent Allowance is a part of the salary of an employee which is given by the employer for the expenses incurred for the rented accommodation. HRA claim can only be made by a salaried person. The house in which the salaried individual is staying should be on rent. You don’t get the benefit of living in your own house. HRA is available only when the rent is more than 10% of the salary.

The government gives this much HRA

Any government salaried person who is living in a rented house, the expenses related to his house are divided into 3 categories, X, Y and Z.. ‘X’ category 50 lakh and above population is for area. Here HRA is given 24% under the 7th Pay Commission. ‘Y’ stands for area with population between 5 lakh to 50 lakh. Here 16 percent HRA is given. Where the population is less than 5 lakhs, it comes in Z category and 8 house rent allowance is given.

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