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Saturday, March 04, 2017

CPSE 3rd Pay Revision Committee Recommendations on HRA

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CPSE 3rd Pay Revision Committee Recommendations on HRA

House Rent Allowance (HRA)

HRA is payable to the CPSE executives in line with the classification of cities and the rate as applicable for Central Government employees. Further, if at any point of time, the Government enhances the rate of HRA for the Central Government employees, the same is recommended to be made applicable to the CPSE employees.

The Committee also recommends that the rate of HRA will be revised to 27%, 18% and 9% when IDA crosses 50%, and further revised to 30%, 20% and 10% when IDA crosses 100%.

The Committee recommends that classification of cities and the rate of HRA shall continue to be as applicable for Central Government employees. Accordingly, the recommended HRA is as per the following:-
Classification of Cities
Rates of HRA
X-Class
(Population of 50 Lakhs & above)
24% of Basic Pay
Y-Class
(Population of 5 Lakhs to 50 Lakhs)
16% of Basic Pay
Z-Class
(Population below 5 Lakhs)
8% of Basic Pay
The Committee also recommends that the rate of HRA will be revised to 27%, 18% and 9% when IDA crosses 50%, and further revised to 30%, 20% and 10% when IDA crosses 100%.

Further, if at any point of time, the Government enhances the rate of HRA for the Central Government employees, the same is recommended to be made applicable to the CPSE employees.

Authority: 3rd PRC Report

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