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Posts Tagged ‘House Rent Allowance’

Service personnel are authorized to HRA, CILQ and FAA

Service personnel are authorized to HRA, CILQ and FAA

Service personnel are authorized to House Rent Allowance (HRA) / Compensation in Lieu of Quarter (CILQ) / Family Accommodation Allowance (FAA)

Accommodation facilities to Officers

Government has sanctioned construction of 1,76,065 Dwelling Units (DUs) for the Married Army officers / soldiers. Apart from construction of DUs, hiring of houses is also undertaken for Defence personnel to meet the deficiency of housing. In addition, Service personnel are authorized to House Rent Allowance (HRA) / Compensation in Lieu of Quarter (CILQ) / Family Accommodation Allowance (FAA).

Married Accommodation Project was approved in 2002 for providing approximately 2 lakh Dwelling Units (DUs) to serving defence personnel. Under this project DUs with improved specifications are being constructed. Besides, under Annual Major Works Programme (AMWP) residential accommodation projects are undertaken as per special needs from time to time.

47383 DUs of Phase-I completed. Out of 58250 DUs meant for Phase-II, 27268 DUs constructed & balance 30982 DUs are under construction. 70432 DUs are planned for Phase-III projects.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Kunwar Pushpendra Singh Chandel in Lok Sabha today.

Source: PIB

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Be the first to comment - What do you think?  Posted by admin - March 11, 2017 at 1:37 pm

Categories: Allowance   Tags: , , , , , ,

Information on House Rent Allowance

Information on House Rent Allowance – CGDA

Office of the CGDA, Ulan Batar Road, Palam, Delhi Cantt – 10

No.AN/III/3012/Circular Vol-VII

Dated 03-03-2017

To,

All PCsDA/PCA (Fys)/PIFAs
CsDA/CsFA (Fys)/IFAs
(Through CGDA Website)

Subject: Information on House Rent Allowance-regarding.

Please find enclosed copy of Min. of Defence, Deptt. of Expenditures, ID No.11-1/2016-IC/Pt.II dated 23.02.2017 on the subject received through MoD/D (Civ-I).

  1. Ministry in their ID has stated that the committee on Allowances headed by the Finance Secretary and Secretary (Expenditure) has desired that the information relating to occupancy of Govt. Accommodation and the officers/officials HRA (not allotted Govt. accommodation) may be obtained.
  2. The information in the following format has been sought for by the Ministry.
Group Total number of employees Number of Officers/Officials residing in Government accommodation Number of Officers/Officials drawing HRA
A
B
C
Total
  1. It is therefore, requested that the information on the format in respect of officers and staff working in your organization (including sub offices under your jurisdiction) may please be furnished on the E-mail anIII.cgda@nic.in by 03.03.2017 to enable their HQrs. Office to render the compiled report to the Ministry.

Please accord top most priority.

(Mustaq Ahmad)
Dy.CGDA (AN)

Signed Copy

Be the first to comment - What do you think?  Posted by admin - March 4, 2017 at 6:27 pm

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Guidelines and instructions in the case of Husband and Wife both working for Central Government

Guidelines and instructions in the case of Husband and Wife both working for Central Government

What are all the regulations, Guidelines and instructions in the case of Husband and Wife both working for Central Government in the situations such as applying for House Building Advance, Medical Attendance Rules, Children Education Allowance, Leave Travel Concession Etc ?

How a married couple is treated in various Central Government service matters when both Husband and Wife are serving in Central Government?

The need to have a clarity on this subject gains much significance because treatment of them could differ in each law as each one would treat them according to the intention of the particular law.

For example, both are entitled to draw HRA even if they work in the same station, and live together but not provided with Government accommodation.

But when comes to Allotment of Quarters maintained by Government, only one residence will be provided to them except in the case of Judicial separation.

This article is a compilation of regulations in various service matters in respect of Husband and Wife when both are Central Government Employees.

HBA can be claimed by either of them. As per Rule 2 of HBA Rules, for the purpose of eligibility based on cost-ceiling of the house to be constructed, pay of both of them can be taken in to account. However, for the purpose of calculating the maximum amount of advance eligible under HBA, only the pay of the employee who prefers to avail HBA can be taken in to account.

Medical Attendance Rules

In non-CGHS areas, central government employees are covered by CS(MA) Rules which provide reimbursement of medical expenses incurred by the Central Government Employees. In the case of Both husband and wife working central government, to avoid double claim for same medical expenses, either Husband or Wife is permitted to make claims for self and entire family. The person who prefers to make claims under Medical Attendance Rules should be clearly mentioned in the joint declaration given by Both Husband and Wife in this regard. In the event of promotion, transfer, retirement, etc this declaration can be revised at any time. In the case of wife prefers to avail this concession for the entire family, she can either choose her parents or parents-in-law as dependents and prefer medical claim for them.

Children Education Allowance

As far as reimbursement of payment of tuition fees and hostel fees are concerned, either Husband or Wife can avail the benefit.
Family Planning Allowance

Either Husband or Wife may prefer to receive Family Planning Allowance. Since FPA is based on pay in pay band and grade pay, it will be beneficial if the employee drawing higher pay prefers to receive the same. In that case, there is no condition specified with regard to the employee who undergone family planning.

Leave Travel Concession

Husband

Wife

  1. His wife,
  2. His two surviving unmarried children or step children wholly dependent on him,
  3. His parents and/or step mother wholly dependent on him, whether or not residing with him and
  4. His unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands or widowed sisters residing with and wholly dependent him, provided their parents are either not alive or are themselves wholly dependent on him
  1. Her wife,
  2. Her two surviving unmarried children or step children wholly dependent on her,
  3. Her parents and/or step mother wholly dependent on her, whether or not residing with her and
  4. Her unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands or widowed sisters residing with and wholly dependent her, provided their parents are either not alive or are themselves wholly dependent on her

The above mentioned provision relating to family members can be separately declared and LTC for those members can be separately claimed by both Husband and Wife, subject to conditions that children will be eligible for the benefit in one particular block as members of the family of one of the parents only and that if husband or wife avails the facility as a member of the family of the other, he or she is not entitled for claiming the concession for self independently.

Travelling Allowance

Travelling Allowance allowed in the event of transfer of one or both of them simultaneously one of the spouses can prefer the claim and the other will be treated as member of family. In such situations only one lumpsum grant can be claimed.

If a husband or wife is transfered after 60 days of transfer of the spouse, but within 6 months, 50% of transfer grant is admissible. However, if both are entitled for reimbursement of cost of travel by personal car, if required they can travel seperatey and claim both of such travel expenses.

Family Pension

Either Husband or Wife is entitled for family pension in addition to own pay or pension, if the spouse dies.

In the case of demise of such husband /wife also, who was receiving family pension for the demise of his/her spouse, the child / children of the deceased parents should be granted two family pensions subject to certain limits prescribed. Please refer to Rule 54 (11), CCS (Pension) Rules in this regard.

House Rent Allowance

HRA will be paid to both husband and wife even if they work in the same station and did not avail Government Quarters. Even if one of them avails the Government residence in the same station where the other spouse is working, he/she will not be entitled for HRA.

Central Government Health Scheme

While both alongwith their family members will be eligible for medical treatement under CGHS, the spouse drawing higher pay will contribute to the Scheme. The scheme does not cover the Parents of the non-contributing employee.

However, women employees can prefer to include her parents-in-law, instead of her parents, in the family for availing CGHS.

If both Husband and Wife prefer to contribute for CGHS, parents of both will be entitled for medical benefits under CGHS.

Allotment of Residence

For the purpose of allotment of residence status of each of Husband and Wife such as designation, pay/grade pay drawn, service experience etc will be considered independently. In other words, higher status of either of two can be taken into account for priority, higher grade of residence etc. In any case both Husband and wife are entitled for allotment of one residence only except in the event of judicial separation.

Transfer norms when Husband and wife are in Government service

Be the first to comment - What do you think?  Posted by admin - January 6, 2017 at 7:36 pm

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HRA should be paid @ 35, 25 and 15% of pay : Agitational Programme to be held from 05.12.2016 to 09.12.2016

Agitational Programme to be held from 05.12.2016 to 09.12.2016
“HRA should be paid @ 35, 25 and 15% of pay”

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

REF: BPMS/Cir/17th TC/ 11

Dated: 02.11.2016

To,
The President/General Secretary
Unions Affiliated to the Federation
& Office Bearers & Executive Committee Members
BPMS

Subject: Agitational Programme to be held from 05.12.2016 to 09.12.2016.

Dear Brothers and Sisters,
It is hoped that all of you are well and busy in accelerating trade union activities. Under the banner of Government Employees National Confederation, we continuously demanded for removal of anomalies related to pay fixation, bonus, income tax, recommendations of Pay Commissions but the Governments did not pay any heed to our genuine demands and it is leading discontentment amongst the employees. Therefore, Government Employees National Confederation has decided that all the constituent Federation of GENC will observe an agitation programme throughout the country from 05.12.2016 to 09.12.2016.

Being a constituent of GENC, this federation BPMS has decided that all the affiliated unions will organize agitation programme from 05.12.2016 to 09.12.2016 like Gate Meeting, Slogan Shouting, Dharna etc. On 09.12.2016 a memorandum should be submitted to their respective Heads of the establishment addressed to Hon’ble Prime Minister of India mentioning the following demands:

1. Minimum Pay should be fixed Rs 24,000/- and fitment formula should be 3.42 in place of 2.57.

2. Under MACP Scheme, 05 financial upgradation should be granted in promotional hierarchy in the service of 30 years.

3. Annual Increment should be @ 5% in place of 3%.

4. The Benchmark ‘very good’ should be abolished for granting of promotion, financial upgradation and annual increment.

5. The Grade pay of Group ‘C’ Rs 1900/- and Rs 2000/- should be merged and upgraded to Rs 2400/-.

6. HRA should be paid @ 35, 25 and 15% of pay.

7. New Pension Scheme should be scraped.

8. FDI should be scraped in Defence and Railway.

9. Bonus should be calculated on Rs 18,000/- in place of 7,000/- because minimum pay has been enhanced from 7,000/- to 18,000/-.

10. Income tax exemption limit (tax free income) should be extended to Rs 8,00,000/-.

11. The wards of employees died in harness should be guaranteed with 100% compassionate ground appointments.

Thanking you

Sincerely yours

(M P SINGH)
General Secretary

Copy to:
1 The General Secretary BMS, New Delhi
2 Shri K.N.Sharma, I/C BPMS, Lucknow For information
3 The Secretary General, GENC, Kanpur

Source: BPMS

Be the first to comment - What do you think?  Posted by admin - November 28, 2016 at 7:40 am

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7th Pay Commission: Higher allowances from January

7th Pay Commission: Higher allowances from January

New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources told today.

When asked whether the arrears would be paid too, they said, “Higher allowances will be paid with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.”

“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.

The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.

The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.

Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.

“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.

Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.

TST

Be the first to comment - What do you think?  Posted by admin - November 23, 2016 at 10:14 pm

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

NFIR
National Federation of Indian Railwaymen

No.I/5(C)/Pt.I

Dated: 04/11/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub : Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

Ref.: (i) NFIR’s PNM item No.40/2012
(ii) NFIR’s letter No. 1/5(c )/Part I dated 22/02/2016, 25/04/2016 & 01/08/2016
(iii) Railway Board’s Letter No.E(P&A)-II/2012/FE2/4 dated 31/10/2016.

With reference to reply received vide Board’s letter dated 31/10/2016, the Federation desires to convey as follows :

(a) NFIR vide agenda item No.40/2012- last para, had demanded that condition mentioned in para 3 in Railway Board’s letter No.E(P&A)II-99/HRA-2 dated 16.03/2000 should be waived off or withdrawn.

(b) Federation also demanded that provision as mentioned in para 2 of the agenda item be made applicable to all categories of railway employees whether they belong to “Essential” or “other than Essential” categories.

It seems, the Railway Board have not examined the above issues with positive mind, taking ground reality into account with regard to availability of railway residential quarters, their condition for human occupation or otherwise. Due to total failure in maintenance of existing railway quarters on Zonal Railways, many quarters became totally outdated, unfit for occupation and overdue for demolition.

The main problem is that when the employee has vacated the quarters, he is denied HRA till the said quarter is physically occupied by another employee. This needs to be addressed.

Yours faithfully,
sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - November 8, 2016 at 8:35 am

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

Railway Board circular on HRA when not accepting or surrender of Railway Residential Accommodation

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. E(P&A)-II/2012/F.E.2/4.

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110 055.

New Delhi, dated 31/10/2016.

Sub.: Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

Ref: 1. NFIR’s letter No. 1/5(c )/Part I dated 22/02/2016.

2. NFIR’s letter No. 1/5(c )/Part I dated 25/04/2016.

I am directed to refer to your letters quoted above. The subject item (No. 40/2012) refers to admissibility of HRA in the event of non-acceptance or surrender of Railway residential accommodation. While this is governed by Railway Board’s letter No. E(P&A)-II/99/HRA-2 dated 16/03/2000; the Federation vide their letter No. 1/5(c) Pt. I dated 09/04/2012 had asked for review of the clause mentioned in Board’s letter ibid that HRA will not be admissible to railway employees for whom railway accommodation is specifically earmarked or to those employees, whose occupation of railway quarters is essential for easy accessibility during emergencies and efficient discharge of their duties etc. (“essential staff”).
2. Subsequently, as recorded in the PNM meeting held on 30-31 January, 2014, it was explained to the Federation that wherever there is a house earmarked the employee cannot be allowed HRA. Federation contended that administration cannot deny HRA when earmarked quarters are not fit for occupation and wanted that a clarification be issued in the matter.

3. The item was further discussed by the Federation with the Board on 15/07/2015 and it was recorded as “As decided in the earlier meeting, a clarification after reviewing the matter is to be issued. Official Side stated that they propose to issue instructions in consultation with Civil Engineering Directorate. Federation stated that while they do not understand the need for a consultation with the Civil Engineering in this case, they requested the clarification be issued quickly. It was agreed to do so. The item to be closed thereafter” .

4. Accordingly, the matter had seen referred to Land & Amenities Dte. who confirmed that instructions were in place (issued vide RB/L&A No. 009/2011 dated 19/09/2011 to all Zonal Railway, PUs etc.) regarding dismantling of condemned/abandoned quarters, and that quarters declared condemned are not made available for allotment.

5. In line with the assurance recorded at para 3 above, letter No. E(P&A)- II/2012/F.E.2/4 dated 12/10/2015 was issued to all Zonal Railway and Production Units etc. that before allotment of Railway quarters, it should be ensured that such quarters are fit for occupation. Copy of this letter was also endorsed to the Federation.

6. It is, therefore, submitted that the letter dated 12/10/2015 referred to had already been issued by the time minutes of the discussions on the item held with NFIR on 8th and 9th October, 2015 were finalized/received and this was also explained in the meeting with NFIR in 18/01/2016. There has, therefore, been no deliberate violation of the assurance given to the Federation.

7. As, in terms of extant instructions, quarters unfit for occupation are not to be allotted, the question of allowing HRA against such allotment does not arise, in general. Any violation of the extant instructions can be taken up with the concerned field formation for appropriate remedial action.

Download Railway Board Circular No.E(P&A)-II/2012/F.E.2/4 dated 31.10.2016

Be the first to comment - What do you think?  Posted by admin - November 5, 2016 at 4:44 pm

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7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

7th-CPC-HRA

Sources said that the Allowance Committee Meeting has finalized a proposal on HRA. It will be finalized in the Meeting held on 25th October 2016. It is said that the proposed Meeting under the Chairmanship of DOPT Secretary (P) with the Secretary Staff Side, NC (JCM) is to firm up the view on various allowances pertaining to Department of Personnel & Training.

 

This Meeting is conducted as per the decision of Allowance Committee Meeting held on 1-9-2016. The meeting to finalize the allowances pertaining to DOPT has been scheduled to be held on 25th October 2016.

The Reliable Sources said that the Official Side are in the view of increasing HRA by 1 Stage to reach 30% , 20% and 10% .

 

The pay Commission recommended HRA at the rates initially from 24%, 16%, and 8 % and whenever DA reaches 50% it will be increased to 27%, 18% and 9% and Finally after DA reaches 100% the HRA will be revised to 30% , 20% and 10% for X,Y and Z cities respectively.

 

The NCJCM has demanded in its Memorandum submitted to the 7th Pay Commission that 60%, 40% and 20% HRA to be recommended for X,Y and Z cities.

 

The Pay Commission totally ignored this demand and recommended reduction of rates from Sixth CPC. Since it is Co related with DA , it will be increased after two stages to 30%, 20% and 10% after DA reaches 50% and 100%.

 

The sources said that now it is proposed to start the HRA rates initially from 27%, 18% and 9% and after DA reaches 50% the House Rent Allowance will be revised to 30%, 20% and 10% for X,Y and Z cities respectively.

 

Source : govtstaffnews.in

Be the first to comment - What do you think?  Posted by admin - October 24, 2016 at 8:27 am

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Brief of the second meeting of the Committee on Allowances held today under the chairmanship of Secretary, Finance(Expenditure), Government of India

Brief of the second meeting of the Committee on Allowances held today under the chairmanship of Secretary, Finance(Expenditure), Government of India

National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees

Shiva Gopal Mishra
Secretary

No.NC/JCM/2016

Dated: September 1, 2016

All Constituents of
National Council(JCM)

Dear Comrades!

Sub: Brief of the second meeting of the Committee on Allowances held today under the chairmanship of Secretary, Finance(Expenditure), Government of India

To obtain the views of the National Council(Staff Side)(JCM) on the recommendations of 7th CPC relating to Allowances, the second meeting of the Committee on Allowances held today under the chairmanship of Secretary, Finance(Expenditure), Government of India, with the National Council(Staff Side) JCM.

From the Official Side, Secretary(Defence), Home, DoP&T, Postal, Chairman Railway Board, J.S.(Estt.), J.S.(Pers.) and J.S.(IC), and from Staff Side(JCM), all the Standing Committee Members were present in the meeting.

At the outset, Secretary(Staff Side)(JCM) as well as Leader(Staff Side)(JCM) and other Standing Committee Member of the NC/JCM(Staff Side) expressed their anguish for non-formation of High Level Committee as was agreed to by the Group of Ministers(Government of India) for settling the issue of Minimum Wage and Multiplying Factor.

The Secretary, Finance(Expenditure) told that, the committee constituted under the chairmanship of Addl. Secretary(Exp.) with J.S.(Pers.), JS(Estt.) and JS(Imp.) as Members has been made only for this purpose. Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.

The Secretary, Finance(Expenditure) asked the Staff Side(JCM) to give their viewpoint in a Note on the Common Demands to implement these, and the Departmental grievances to their respective departments, and after that, a meeting will again be called.

Staff Side(JCM) strongly demanded that, date of effect of Allowance should be 01.01.2016. The Staff Side(JCM) explained its position as well about its demand that, House Rent Allowance should be 10%, 20% and 30% and Transport Allowance must be rationalized and exempted from the Income Tax, Children Education Allowance should be Rs.3,000 and Hostel Subsidy should be Rs.10,000 and these should also be exempted from the Income Tax.

Staff Side demanded that, Post Graduate and Professional Courses should also be covered in Children Education Allowance. The issue of Special Duty Allowance was also raised for N.E. Region by the Standing Committee Members of JCM(Staff Side). Fixed Medical Allowance should be Rs.2,000 with Dearness Allowance Indexation, Over Time Allowance must be given, Small Family Allowance should be continued and Dress Allowance needs to be reviewed. Various Departmental Allowances, which have been abolished, should be allowed to continue, like Breakdown Allowance in the Railways and Fixed Conveyance Allowance to Postal Department employees. All the Standing Committee Members raised various issues related to Allowances.

This is for your information.

Comradely yours

sd/-
(Shiva Gopal Mishra)
Secretary Staff Side

Source : ncjcmstaffside

Be the first to comment - What do you think?  Posted by admin - September 3, 2016 at 7:41 am

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Not Revising HRA as per 7th CPC Recommendation is a big disappointment

Not Revising HRA as per 7th CPC Recommendation is a big disappointment…!

7th Pay Commission submitted its Recommendation in November 2016. House Rent Allowance is one of the very important recommendation expected by CG Employees among the most expected recommendations.

A Govt servant is spending one third of his salary for paying House Rent. Considering these expenses of CG Employees those who are living in big cities, Sixth CPC has recommended 10, 20 and 30% of the Basic pay as HRA. Accordingly, HRA has been paid for the past Eight Years and the Federation Demanded to increase this rates in 7th Pay Commission.

But the Commission in its recommendation reduced these rates to 8,16 and 24%. Though it has been justified with various reasons by 7th CPC, it disappointed the CG employees. Since CG Employees felt that only these reduced rates will be paid for next ten years, their demand to restore the old rates started gaining big support. As a result of this, all the Staff associations and Federations pressurized the Government to increase the rate of HRA and it was included in charter of 7th CPC demands.

Already the Government had wasted six months in the name of Empowered Committee to examine the 7th CPC Recommendations. Until now the report of this committee is not published.

The Cabinet gave its approval for the implementation of 7th CPC recommendations on 29th June 2016. It has been stated in that report that, a committee headed by Secretary, Finance will be Constituted to examine the Allowances and committee is given four-month time to submit its report. Till then the HRA will be paid as per Sixth CPC rates.

Meanwhile, Group of Ministers invited NJCA for a meeting to with draw the Indefinite Strike proposed to commence from 11th July, In that meeting, Increasing the percentage of HRA also discussed. The Government agreed to form a committee to examine the Allowances. It has been described as Government indirectly agreed to increase the HRA.

Implementation of 7th CPC recommendation was ensured by Gazette Notification issued on 25th July 2016. But there was no Change in the recommendation of HRA.

Till now the Central Government employees are wondering that why the Committee has been given four Months’ Time to examine the HRA. As well as the decision to continue the HRA in Sixth CPC is considered as big disappointment.

HRA plays a Major Role in pay hike. So the CG Staff feel that HRA would have been paid in Revised rates from this month onwards. Thereafter paying arrears for the Increased amount in HRA will become inevitable. Because there is no assurance that Revised rates of HRA will be given retrospective effect.

Be the first to comment - What do you think?  Posted by admin - August 18, 2016 at 10:39 am

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

NFIR

No. I/5(C)/Part I

Dated: 01/08/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation-reg.

Ref: (i) NFIR’s PNM Item No. 40/2012.
(ii) Railway Board’s letter No. E(P&A)II-20121/F.E.2/4 dated 12/10/2015.
(iii) NFIR’s letterNo. I/5(c)/Part I dated 22/02/2016 & 25/04/2016.

******

During NFIR’s PNM meeting held with the Railway Board on 19th/20th May 2016 while discussing the subject matter under Item No. 40/2012, it was decided that a clarification in the matter will be issued. In the meeting the Official Side also agreed that the draft letter to be issued to the Railways, PUs etc will be shown to the Federation. Thereafter a period of over two months has passed, unfortunately draft instructions to be issued have not been sent to the GS/NFIR till date.
NFIR, therefore, requests the Railway Board to send draft instructions to the Federation for vetting and early return to enable the Board to issue instructions as per agreement.

Yours faithfully,
(Dr.M. Raghavaiah)

General Secretary

Copy to the Executive Director/PC-I, DFCC Building, Pragati Maidan, Metro Bhavan, Railway Board, New Delhi for information and necessary action please.

Copy to the General Secretaries of affiliated Unions of NFIR.
Media Centre/NFIR.
File No.40/2012 (PNM).

NFIR

Be the first to comment - What do you think?  Posted by admin - August 2, 2016 at 4:51 pm

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House Rent Allowance (HRA) Calculations after implementation of 7th CPC

House Rent Allowance (HRA) Calculations after implementation of 7th CPC

 The Union Cabinet finally cleared the 7th Central Pay Commission for implementation on the 29th of July 2016. The Report which recommended a hike in salaries and pension for employees and pensioners, will be implemented from 1st January 2016. After taking into account dearness allowance at the prevailing rate, the salary, pension to all central government employees and pensioners will increase by at least 14.29 % as on January 2016, and could go up to 23 % in upper categories.

 

 The union cabinet approved the recommendations of the 7th CPC on pay and pension but proposals for allowances was deferred and announced a committee under the finance secretary. The committee will analyse the allowances to be implemented or scraped. So the allowances like HRA, TA etc. will continue at existing rates for now.

 

 Regarding the HRA at present, it is 30 % for class X cities, 20% for Y cities, and 10% for Z class cities. However, in the 7th CPC report it was recommended that the HRA should paid at the rate of 24%, 16% and 8% of the new basic pay for X, Y and Z category of cities respectively. The commission had recommended a rise in HRA when the DA crosses 50% to 27%, 18% and 9% and further increase to 30%, 20% and 10% when the DA crosses 100%.

 

 Now the allowances including HRA will be kept under the newly formed committee, there will be a huge confusion when calculating allowances including the HRA. On what basis will the HRA be calculated if the new recommendations are implemented?

 

 For example,

6th CPC Pay in the pay band Grade Pay Basic Pay HRA @30% 7th CPC Basic pay HRA @ 24%
Rs.13690 Rs.4200 Rs.17890 Rs.5367 Rs.46200 Rs.11088
Rs.10000 Rs.2000 Rs.12000 Rs.3600 Rs.30840 Rs.7464

 

Let us wait and see for the government orders regarding the calculations!!!!

Be the first to comment - What do you think?  Posted by admin - July 2, 2016 at 8:34 am

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Percentage of HRA in 7th pay commission after cabinet approval

Percentage of HRA in 7th pay commission after cabinet approval

 

The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also 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.

 

The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

 

In the press release issued by government said the following

 

” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

 

Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.

 

Source: http://www.gservants.com/

Be the first to comment - What do you think?  Posted by admin - June 30, 2016 at 10:34 am

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House Rent Paid : 80GG has also been raised to 60,000 from 24,000

House Rent Paid : 80GG has also been raised to 60,000 from 24,000 

The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Certain Tax Reliefs announced for small tax payers and others

While presenting the General Budget 2016-17 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley said that the taxation is a major tool available to Government for removing poverty and inequality and this has to be cautiously exercised. But, he would like to give relief to small tax payers, the Finance Minister added.

Thus the ceiling of tax rebate under Section 87A of IT Act has been proposed to be raised to Rs. 5,000 from Rs. 2,000 for individuals with income less than Rs. 5 lakhs. He said that above 2 crore tax payers would get a relief of Rs. 3,000. The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Under the presumptive taxation scheme under Section 44AD of the Income tax Act, the limit of turnover or gross receipts has been raised to two crore rupees from the exiting one crore rupees to benefit about 33 lakh small business people. It frees a large number of such assesses in the MSME category from the burden of maintaining detailed books of account and getting audit done.

The presumptive taxation scheme is to be now extended to professionals with gross receipts up to Rs. 50 lakh with the presumption of profit being 50% of the gross receipts.

Be the first to comment - What do you think?  Posted by admin - March 1, 2016 at 4:32 pm

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Grant of House Rent Allowance to Railway Employees Posted to New Zones/New Divisions: Railway Board orders

Railway Board decision on House Rent Allowance – Orders Issued

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.E(P&A)II-98/HRA-6

RBE No: 20/2016
New Delhi, dated 17/02/2016

The General Manager/CAO’s
All Indian Railways & Production units.

Sub : Grant of House Rent Allowance to Railway employees posted to new Zones/new Divisions – Regarding.

Attention is invited to the instructions contained in Board’s letters of even number dated 9.3.2004, 9.8.2005, 9.8.2006, 12.12.2007, 24.10.2008, 10.12.2009 , 01.07.2013 and 24.07.2014 on the above subject.

2. The matter has been considered by the Board subsequent to issue of letter No. E(G)2009 QR 1-2 dated 20.10.2014 and it has been decided that railway employees posted to ECR and NWR may be allowed house rent allowance upto 31.12.2015 on the same terms and conditions laid down in the letter of even number dated 09.03.2004 ibid and as amended/clarified from time to time.

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

sd/-
(Salim Md. Ahmed)
Director/E(P&A)-II
Railway Board.

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - February 22, 2016 at 10:24 am

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Claiming Children education Allowance is made simple in 7th Pay Commission

Claiming Children education Allowance is made simple in 7th Pay Commission

CHILDREN EDUCATION ALLOWANCE IN 7TH CPC – SOME PERSPECTIVES

The 7th pay commission, which is much expected by all the Central Government Employees, has submitted its report to the government. In its report, the commission has specified that the new pay commission has to be implemented from 01/01/2016 onwards.

The expectations of all the Central Government Employees is focused on: Dearness Allowance, House Rent Allowance and Children Education Allowance.

The fact that the 6th Pay Commission revived the CEA can never be repudiated. Although there are various problems in getting the reimbursement of the allowance, the 6th Pay Commission stands first when it comes to CEA.

7th CPC recommended CEA Rs 2250 pm from existing Rs 1500pm.

The 7th Pay Commission has taken great pains to do away with the practical problems in 6th CPC (Reimbursement).

Particularly, the recommendation that getting a letter from the schools where the children of the Central Government Employees studying is enough will be certainly welcomed by all.

In order to get CEA for those children, who study in the same school from class 1 to class 12, is it necessary to get a certificate for every year? Or is it enough to get a certificate when the child is transferred to another school?

Questions like these naturally arise in our minds.

Getting good education is depends upon getting admission in standard schools. Naturally fees struture is high in these schools.So education expenses get important place in employees monthly budget.

The fact that same amount of CEA will be given for children who study in class 1 and class 12 is irrational. From class 1, every year when the child goes to higher classes, the minimal sum of Rs 2250 has to be increased by atleast 5%.

As per the recommendation of the 7th CPC, when DA exceeds 50%, the CEA increases by 25%. In this case, even to get the first CEA increase one has to wait for at least four or five years. We have to keep in mind that the pay commission is set up only once in ten years.

In spite of all these, the CEA announcement of the 7th CPC is a certainly a laudable one. If it had included the above aspects if would have been even more appreciable.

S.Ratheesh

Source: www.centralgovernmentemployeesportal.blogspot.in

Be the first to comment - What do you think?  Posted by admin - January 12, 2016 at 2:45 pm

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Analysis and Recommendations of 7th Pay Commission on House Rent Allowance

Allowances related to Housing  : House Rent Allowance (HRA) : Presently, HRA is payable at the following rates:

House Rent Allowance (HRA)

 

There are a large number of demands for paying HRA as a percentage of (Basic Pay + DA), instead of as a percentage of Basic Pay alone, as at present. Representations have also been received regarding enhancement of percentage rates and having only two classifications of Metros and Non-metros (instead of the present classification of X, Y and Z cities).

 

PBORs of uniformed forces have vehemently argued for doing away with the concept of Authorized Married Establishment and the requirement of a minimum age of 25 years for grant of Compensation in Lieu of Quarters (CILQ).

 

Analysis and Recommendations: Compensation towards the housing needs of Central Government employees is covered in three ways:

1. As a component of Basic Pay when it is initially fixed (based upon the Aykroyd formula)
2. As a constituent of Dearness Allowance [the AICPI(IW), on which the DA is currently based includes a weight of 15.27% towards housing], and
3. In the form of House Rent Allowance

 

In view of the fact that the DA calculation methodology that is being followed does include a certain weightage for housing, the demand to pay HRA as a percentage of Basic Pay + DA is not justified.

 

To arrive at the appropriate rates of HRA, the Commission used a two-fold approach: (i) It compared the rise in housing compensation with the cost of housing in major X, Y and Z category cities over the period 2006 to 2013, and (ii) It compared, de novo, the HRA after the rise in Basic Pay proposed with representative house rents in major X, Y and Z category cities.

 

For (i) above, the table of comparison (for a hypothetical employee whose Basic Pay was Rs.1000 in 2006) is given below:

 

7cpc compensation for housing

 

As is clear from the above table, compensation for housing in 2013 was 1.79 times that in 2006 for Class X cities, 2.07 times for Class Y cities and 2.92 times for Class Z cities.

During the same period, the weighted (by population of cities) average rise31 in housing index for Class X cities was 1.69 times, for thirty most populated Class Y cities it was 2.10 times, and for twenty-five most populated Class Z cities it was also 2.10 times.

 

Thus, it can be safely concluded that the rise in housing compensation has largely kept pace with the rise in rental values in all categories of cities.

 

However, if a zero-based comparison of HRA with house rents is carried out the Commission observed that today there are websites that give a good idea of the prevalent house rents in various cities. From the information available on the websites, it was observed that with the increase in Basic Pay proposed (and consequent rise in HRA with the rationalized percentages), most of the employees will be able to afford a rented house as per their entitlement.

 

The Commission also took note of the link between increase in HRA and increase in house rent. There was a sharp rise in the index from the first half of 2009, immediately following VI CPC recommendations. The All India House Rent Index32 chart given below demonstrates this:

 

HRA-recommendation-house-rent-index

 

Considering all these factors, and in line with our general policy of rationalizing the percentage based allowances by a factor of 0.8, the Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

 

However, the Commission also recognizes that with the current formulation, once the new pay levels are implemented, the compensation towards HRA will remain unchanged until such time as the pay and allowances are next revised. Going by the historical trend this event is likely to be a decade away. Some representations have been received stating that towards the later part of the ten year period the HRA compensation falls considerably short of the requirement. Having regard to this, the Commission also  recommends 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.

 

Currently, in the case of those drawing either NPA or MSP or both, HRA is being paid as a percentage of Basic Pay+NPA or Basic Pay+MSP or Basic Pay+NPA+MSP respectively. HRA is a compensation for expenses in connection with the rent of the residential accommodation to be hired/leased by the employee and is graded based on the level of the employee, and therefore should be calculated as a percentage of Basic Pay only. Add-ons like NPA, MSP, etc. should not be included while working out HRA.

Be the first to comment - What do you think?  Posted by admin - December 18, 2015 at 10:06 am

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7th CPC recommendations to reduce House Rent Allowance

7th CPC recommendations to reduce House Rent Allowance

 

The 7th Central Pay Commission has been recommended to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

 

The Commission also recommends 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.

 

 

7th CPC HRA: HRA is the most important factor of allowance issuing to existing Central Government employees, it is given for compensate to live in rented house. The HRA rules are allowed for getting allowance even if he/she living in own house.

 

A major changes had been made in 6th CPC on HRA rules. The percentages were prescribed on basic pay according to the cities in India. The cities are classified as X, Y and Z and the rates of percentage respect of the cities are 30%, 20% and 10% on basic pay (Grade pay including).

 

Central Government employees are expecting changes in the rate of percentage according to cities.

 

NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE

 

National Council JCM Staff Side given suggestion on House Rent Allowance for Central Government employees as under…

 

House Rent allowance. 

 

 
The present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows:

We reproduce hereunder the recommendation made by the third Central Pay Commission in the matter of grant of house rent allowance. (Para 29 Part I. Vol. IV.Chapter 56), which would be the best if implemented even today. While we find it difficult to accept the kind of parity suggested above, we are aware of the acute problem caused by the lack of adequate government housing and by the inadequate government housing and by the inadequacy of the existing rates of house rent allowance and recommend as follows:-

 

Government should take houses on long lease and make residential accommodation available to its employees on payment of 10% of their pay.

 

(ii) Government should lay down appropriate house rent allowance rates in different cities and towns based not on population criteria, but on an actual assessment of the prevailing levels of rent in different cities and towns. Alternatively, certain notional rents for different types of accommodation meant for officers and personnel of specified pay groups should be laid down for particular cities after studying the actual conditions in that city. The difference between the actual rent paid and 10% of pay should be reimbursed subject to a maximum of the difference between the notional rent and 10% of the pay. The existing norms in regard to entitlement of accommodation, size of rooms etc. could, if necessary, be reduced depending on the housing situation and the norms usually adopted by different income groups in renting accommodation in the various cities. Such notional rents should, to start with, be applied to all stations falling under the description of classified cities for purposes of House Rent Allowance, Additions could also be made to the list later on by including other cities deserving similar treatment.

 

 (iii) Till the Government is able to make arrangements recommended in the preceding sub-paragraphs, the rates of HRA should be as follows:-

The above said recommendations is still to be acted upon by the Government and the transitory provisions suggested by them i.e. payment of allowances at a pre-determined rate on the basis of classification made of the cities depending upon the population continue to be employed. The non-implementation of the above recommendation of the third CPC , has without exception, gone to depress the wage of all sections of Central Government employees as they are perforce to spend more than what they receive as HRA for obtaining and retaining the accommodation.

The rates prescribed by the 6th CPC, though an improvement over its predecessor Commission, it has not improved the situation. The real estate value throughout the country has skyrocketed and owning an accommodation within the city/Municipal limit has become impossible for Government employees. There is not a single town/village where the real estate boom has remained unaffected. The phenomenal increase in the value of land has naturally impacted the rent, one is to pay on leasing house/flat. The house rent allowance does not bear even a small percentage of the rent. The 7th CPC may recommend to the Government to act upon the suggestion made by the 3rd CPC without any further delay. Pending action on the part of the Government, the Commission may suggest the following rates of House Rent allowance;

 

Be the first to comment - What do you think?  Posted by admin - November 23, 2015 at 8:47 am

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation:

Railway Board Order No. RBE 123/2015

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE 123/2015

No. E(P&A)II-2012/F.E.2/4

New Delhi, dated 12.10.2015.

The General Managers,

All Indian Railways & Production Units etc.

Sub : Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation.

Ref : PNM-NFIR Item No. 40/2012

During a meeting held on 15.07.2015 with the Board and the NFIR on the subject mentioned above. the Federation pointed out that railway quarters which are unfit for occupation or in a dilapidated condition are being allotted by the railway administration in the Zonal Railways/Units and thereby the affected railway employees are being denied HRA. The Federation further requested that necessary instructions may be issued in this regard.

2. In view of the above, all the Zonal Railways/Units may ensure that before allotment of railway quarters to eligible railway employees, it should be ensured that such railway quarters are fit for occupation.

3. This issues in consultation with the Land and Amenities Directorate of Railway Board.

4. Kindly acknowledge receipt.

sd/-
(Salim Md. Ahmed)
Dy.Dir. Esst.(P&A)-II
Railway Board

Source: http://www.indianrailways.gov.in/railwayboard/uploads/directorate/establishment/E%28P&A%29/2015/RBE_123_2015.pdf

Be the first to comment - What do you think?  Posted by admin - October 15, 2015 at 10:30 am

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Grant of 30% House Rent Allowance to employees working Umdanagar, Medchal and Gundlapochampally

Grant of 30% HRA to staff working Umdanagar, Medchal and Gundlapochampally on par with the staff working in GHMC limits.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. E(P&A)II-2012/HRA-1

New Delhi, dated 18.9.2015.

The General Manager (P),
South-Central Railway,
Secunderabad

Sub:- Grant of 30% HRA to staff working Umdanagar, Medchal and Gundlapochampally on par with the staff working in GHMC limits.

 

Please refer to your office letter No. SCR/P-HQ/Ruling/O/811/HRA dated 29.06.15 on the above noted subject.

As per the dependency certificates dated 23.6.2015 issued by the District Collector of Ranga Reddy District, Umdanagar, Medchal & Gundlapochampally in Andhra Pradesh fulfill all the conditions prescribed in Para 2 of Board’s letter No.PC-65/HRA-1/3 dated 22-7-1965, as amended from time to time. The President is, therefore, pleased to decide that Railway employees posted at Umdanagar, Medchal and gundlapochampally, in Andhra Pradesh may be paid House Rent Allowance at the rates applicable to those posted with the classified city of Hyderabad (UA) [‘X’ class city] subject to fulfillment of the conditions laid down for grant of House Rent Allowance.

2. These orders will be valid from 01.06.2015 (a) for a period of 3 yrs i.e. upto 31.05.2018 or, (b) till the conditions prescribed in Para 2 of Board’s letter 22-7-1965, referred to above continue to be fulfilled in respect of Umdangar (ii) Medchal & (iii) Gundlapochampally or (c) until issue of any further orders in this regard by the Ministry of Railways, whichever is earliest.

3. The period at (a) of Para 2 above may, however, be extended after obtaining a fresh Dependency Certificate as prescribed in clause (ii) of Para 2 of Board’s letter dated 22-07-1965, as amended from time to time and in accordance with the provisions of Board’s letter No. E(P&A)II-85/HRA-12 dated 11-3-1986.

4. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

sd/-
(Salim Md. Ahmed)
Dy. Director, Estt.(P&A)II
Railway Board

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - September 22, 2015 at 1:55 am

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