No HRA if one spouse gets official accommodation: Modi government
What's the story
The Indian government has clarified its policy on House Rent Allowance (HRA) for central government employees. The clarification, given by Minister of State for Finance Pankaj Choudhary in a Rajya Sabha session on August 4, states that if one spouse is allotted government accommodation at the same station, the other cannot claim HRA. This is because the family is considered to have been provided with government accommodation and no expenditure is incurred by the other spouse.
Policy status
No plans to review policy for dual-employee couples
Choudhary also clarified that the government has no plans to review this policy for dual-employee couples.
He said, "No," when asked if there was any proposal to review the rule to make it more equitable for couples where both spouses are in active government service and posted at the same station.
This reiterates the government's long-standing position that HRA is meant only as compensation for rental expenses incurred by employees without government accommodation.
Salary component
HRA a key component of government salary structure
HRA is a major part of the salary structure for central government employees. It is given to those who do not get government accommodation and have to spend on rented housing.
The allowance varies according to the posting city and the employee's pay level.
The recent clarification only reiterates existing provisions, responding to a Rajya Sabha member's question about why both spouses are denied HRA when they live together in government-allotted accommodation.