The house rent allowance (HRA) rules for central government employees under the 7th Pay Commission have been revised by the Department of Expenditure, under the finance ministry, and it has been stated that they will not be eligible for HRA in some circumstances.
Which government employees are not eligible for HRA?
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He or she lives with another government employee in an apartment;
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He or she resides in housing provided by the central, state, an autonomous public organization, or a semi-governmental organization such as a municipality, port trust, nationalized banks, Life Insurance Corporation of India, etc., or
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Housing provided to his or her spouse at the same station by the federal, state, autonomous public enterprise, or semi-governmental organization such as a municipality
In comparison, the regulations state that "Government servants other than a government servant who is living in a house owned by him shall be eligible for HRA even if they share government accommodation allotted to other government servants... subject to the condition that they pay rent or contribute towards rent or house or property tax but without reference to the paid or contributed."
What are the HRA categories?
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The goal of the house rent allowance is to cover housing costs for salaried people who live in leased homes. It is separated into three groups: X, Y, and Z.
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For locations with a population of at least 50 lacks, use the letter "X." HRA is provided at a rate of 24%, as recommended by the 7th Central Pay Commission (CPC).
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Regions having a population of between 5,000 and 50,000 are designated as "Y." It is delivered at a rate of 6%.
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A population of fewer than 5 lacks is designated with the letter "Z." It is distributed at 8%.
