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7th Pay Commission G.O. 305 PDF Download: Revised HRA & CCA for TN Employees

7-வது ஊதியக் குழு அரசாணை எண் 305 PDF பதிவிறக்கம்: தமிழக அரசு ஊழியர்களுக்கான திருத்தப்பட்ட HRA மற்றும் CCA

7th Pay Commission G.O. 305 PDF Download: 7th Pay Commission G.O.Ms.No.305: Revised House Rent Allowance (HRA) & City Compensatory Allowance (CCA) for Tamil Nadu Government Employees including TANGEDCO Staff

The Government of Tamil Nadu implemented one of the most significant revisions to employee allowances through G.O.Ms.No.305, Finance (Pay Cell) Department, dated 13 October 2017. Based on the recommendations of the Official Committee, 2017, the Government revised the rates of House Rent Allowance (HRA)City Compensatory Allowance (CCA), the classification of cities and towns, HRA in lieu of rent-free quarters, and the recovery of rent for Government quarters under the revised Pay Matrix.

Subsequently, the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) adopted these Government Orders through Proceedings No.135 dated 07 July 2018, extending the revised rent recovery provisions to employees occupying Board quarters.

This comprehensive guide explains every important provision of G.O.Ms.No.305, including revised HRA tables, City Compensatory Allowance, rent recovery, city classification, and the implementation of these provisions in TANGEDCO.

Background of G.O.Ms.No.305

The Official Committee, 2017 was constituted to examine the revision of pay and allowances for Tamil Nadu Government employees following the implementation of the revised Pay Matrix. One of its major recommendations was the revision of:

  • House Rent Allowance (HRA)
  • City Compensatory Allowance (CCA)
  • Classification of cities and towns
  • Recovery of rent for Government quarters
  • HRA in lieu of rent-free accommodation

After examining the recommendations, the Government accepted them and issued G.O.Ms.No.305.

Major Objectives of the Government Order

The revised order was issued with the following objectives:

  • To align HRA with the revised Pay Matrix.
  • To revise HRA according to different categories of cities.
  • To provide realistic compensation for increasing rental costs.
  • To revise City Compensatory Allowance.
  • To reclassify cities and municipalities based on urban development.
  • To revise recovery of rent for Government residential quarters.

Effective Date

The revised rates of House Rent Allowance and City Compensatory Allowance became effective from:

📅 1 October 2017

The revised pay ranges were linked with the revised Pay Matrix introduced after the Official Committee recommendations.

House Rent Allowance under the Revised Pay Matrix

The revised HRA depends upon two important factors:

  1. Employee’s revised Pay Level / Basic Pay.
  2. Classification of the city or town where the employee is posted.

The Government retained five categories of cities:

  • Grade-I(a)
  • Grade-I(b)
  • Grade-II
  • Grade-III
  • Grade-IV

Revised HRA Rates (Part-I)

Revised Pay Range (₹)Grade-I(a)Grade-I(b)Grade-IIGrade-IIIGrade-IV
Up to 13,6001,300700600400250
13,601 – 17,2001,5001,000700450300
17,201 – 21,0001,8001,200800500350
21,001 – 23,9002,1001,4001,000700400
23,901 – 27,2002,6001,7001,200800400
27,201 – 30,6003,1002,0001,5001,000450
30,601 – 35,4003,6002,3001,7001,200500
35,401 – 37,3004,2002,6001,8001,500550
37,301 – 41,1004,7003,0002,3001,700600

The remaining HRA pay ranges from ₹41,101 onwards are covered in Part 2.

Benefits of the Revised HRA Structure

  • Improved financial support for employees residing in rented accommodation.
  • Higher HRA for metropolitan and major urban centres.
  • Uniform pay-based HRA structure across departments.
  • Separate HRA for employees eligible for rent-free quarters.
  • Reclassification of cities reflecting urban growth.
  • Simplified calculation under the revised Pay Matrix.

Revised House Rent Allowance (HRA) Rates – Part II

The following table contains the remaining revised House Rent Allowance rates applicable to Tamil Nadu Government employees under G.O.Ms.No.305, Finance (Pay Cell) Department, dated 13 October 2017. These rates are based on the revised Pay Matrix and the classification of cities and towns.

Revised Pay Range (₹)Grade-I(a)Grade-I(b)Grade-IIGrade-IIIGrade-IV
35,401 – 37,3004,2002,6001,8001,500550
37,301 – 41,1004,7003,0002,3001,700600
41,101 – 44,5005,2003,3002,6001,900650
44,501 – 50,2005,7003,6002,9002,000650
50,201 – 51,6006,2003,8003,1002,200700
51,601 – 54,0006,8004,1003,2002,200750
54,001 – 55,5007,3004,3003,2002,200800
55,501 – 56,9007,5004,3003,2002,200850
56,901 – 64,2007,8004,3003,2002,200850
64,201 & Above8,3004,3003,2002,200850

Important Observations

  • The maximum normal HRA under the revised structure is ₹8,300 per month.
  • Employees posted in Grade-I(a) locations receive the highest HRA.
  • The HRA increases progressively with higher pay ranges.
  • Separate HRA rates continue for five different categories of cities.
  • The revised rates replaced the earlier HRA schedule from 1 October 2017.

Revised HRA in lieu of Rent-Free Quarters

The Government has prescribed higher House Rent Allowance for employees who are eligible for rent-free Government accommodation but are not actually provided with quarters. These employees receive HRA in lieu of rent-free quarters at enhanced rates.

Revised Pay Range (₹)Grade-I(a)Grade-I(b)Grade-IIGrade-IIIGrade-IV
Up to 13,6001,7001,100900600400
13,601 – 17,2001,9001,3001,100700450
17,201 – 21,0001,9001,6001,200700500
21,001 – 23,9002,5001,8001,400900550
23,901 – 27,2003,0002,1001,6001,100600
27,201 – 30,6003,5002,4001,8001,200650
30,601 – 35,4004,1002,4002,1001,500650
35,401 – 37,3004,6003,0002,4001,700700
37,301 – 41,1005,1003,4002,7001,900750
41,101 – 44,5005,6003,7002,9002,100800
44,501 – 50,2006,1003,9003,2002,200850
50,201 – 51,6006,7004,2003,5002,400900
51,601 – 54,0007,1004,5003,6002,400900
54,001 – 55,5007,7004,7003,6002,400950
55,501 – 56,9008,0004,7003,6002,4001,000
56,901 – 64,2008,2004,7003,6002,4001,000
64,201 & Above8,2004,7003,6002,4001,000

Who is Eligible for HRA in lieu of Rent-Free Quarters?

The Government Order clearly states that the enhanced HRA rates are applicable to employees who are entitled to Government-provided rent-free quarters but have not actually been allotted such accommodation. These revised rates apply uniformly to all eligible employees covered by the revised pay structure.

Key Features of the Revised HRA Structure

  • ✔ Five categories of cities are retained for HRA calculation.
  • ✔ Separate HRA schedule for rent-free quarter entitlement.
  • ✔ Maximum HRA: ₹8,300 per month.
  • ✔ Maximum HRA in lieu of rent-free quarters: ₹8,200 per month.
  • ✔ Effective from 1 October 2017.
  • ✔ Applicable to employees covered under the revised Pay Matrix.

Reclassification of Cities and Towns for House Rent Allowance

One of the major changes introduced through G.O.Ms.No.305, Finance (Pay Cell) Department, dated 13 October 2017 was the revision and reclassification of cities and towns for the purpose of House Rent Allowance (HRA). The Government retained the existing grading system but upgraded several cities and urban agglomerations based on urban development, municipal status and Government of India classification.

The revised HRA continues to be calculated according to the following five categories:

  • Grade-I(a)
  • Grade-I(b)
  • Grade-II
  • Grade-III
  • Grade-IV

Grade-I(a) – Chennai Metropolitan Area

The Government retained the existing classification for Grade-I(a).

The following areas continue to be eligible for the highest rate of House Rent Allowance:

  • Chennai City
  • Places situated within 32 kilometres from Chennai City limits.
  • If the 32 km radius falls within part of a Panchayat Union, the entire Panchayat Union is treated as Grade-I(a).

No change has been made to the Grade-I(a) classification under G.O.Ms.No.305.

Grade-I(b) – Major Urban Agglomerations

The Government expanded Grade-I(b) by including additional Urban Agglomerations (UA).

The revised Grade-I(b) category includes:

  • Coimbatore (UA)
  • Madurai (UA)
  • Salem (UA)
  • Tiruppur (UA)
  • Tiruchirappalli (UA)
  • Erode (UA)

All places located within 16 kilometres from the limits of these Urban Agglomerations are also eligible. If the radius extends into a Panchayat Union, the entire Panchayat Union is treated as Grade-I(b).

Grade-II – Municipal Corporations and Grade-C Cities

The revised Grade-II category now includes:

  • Cities classified as Grade-C by the Government of India (2004).
  • All Municipal Corporations not covered under Grade-I.
  • Special Grade Municipalities.
  • Areas within 8 kilometres of these cities.

This revision significantly increased the number of urban centres eligible for higher House Rent Allowance.

Grade-III – Municipalities and Taluk Headquarters

The revised Grade-III category consists of:

  • All Municipalities (except Special Grade Municipalities).
  • Taluk Headquarters irrespective of their local body status.

This category provides HRA to employees working in district and taluk-level administrative centres.

Grade-IV – Remaining Areas

All places not covered under Grade-I(a), Grade-I(b), Grade-II or Grade-III fall under Grade-IV.

The Government clarified that employees working in unclassified places shall receive House Rent Allowance under Grade-IV. Employees switching to HRA under this provision are not entitled to Rural Service Incentive Allowance (RSIA).

Complete List of Grade-C Cities (Government of India Classification)

The Government Order includes the following places classified as Grade-C by the Government of India. These cities are considered for Grade-II HRA eligibility where applicable.

  • Ambur
  • Arakkonam
  • Arani
  • Aruppukkottai
  • Attur
  • Bhavani (UA)
  • Bodinayakkanur
  • Chengalpattu
  • Chidambaram (UA)
  • Coonoor (UA)
  • Cuddalore
  • Dharapuram
  • Dharmapuri
  • Dindigul
  • Erode (UA)
  • Gobichettipalayam
  • Gudiyattam (UA)
  • Hosur
  • Kadaiyanallur
  • Kambam
  • Kanchipuram (UA)
  • Karaikkudi (UA)
  • Karur (UA)
  • Kovilpatti
  • Krishnagiri
  • Kumbakonam (UA)
  • Mannargudi
  • Mayiladuthurai
  • Mettupalayam
  • Mettur
  • Nagapattinam (UA)
  • Nagercoil
  • Namakkal
  • Neyveli (UA)
  • Palani (UA)
  • Panruti
  • Paramakkudi
  • Pattukkottai
  • Pollachi (UA)
  • Pudukkottai
  • Puliyangudi
  • Rajapalayam
  • Ramanathapuram
  • Sankarankoil
  • Sivakasi (UA)
  • Srivilliputtur
  • Theni-Allinagaram
  • Tenkasi
  • Thanjavur
  • Thiruvarur
  • Tindivanam
  • Tiruchengode
  • Tirunelveli (UA)
  • Tiruppattur
  • Tiruppur (UA)
  • Tiruvannamalai
  • Thoothukkudi (UA)
  • Udhagamandalam
  • Udumalaipettai
  • Valparai
  • Vaniyambadi (UA)
  • Vellore (UA)
  • Villupuram
  • Virudhunagar
  • Virudhachalam

Recovery of Rent for Occupying Government Quarters

The Government also revised the rent recovery for employees occupying Government quarters. Employees in Level-5 and below in the Pay Matrix and employees entitled to rent-free accommodation continue to be exempt from rent recovery. For other employees, the revised percentage of rent recovery is as follows:

Revised Pay RangeGrade-I(a) & Grade-I(b)Grade-IIGrade-IIIGrade-IV
₹18,201 – ₹26,2001.5%1.5%1%1%
₹26,201 – ₹48,7003%3%3%2%
₹48,701 & Above4%4%4%3%

The revised rent recovery became effective from 1 October 2017. Rent already recovered for the period from 1 January 2016 to 30 September 2017 was not revised even after pay refixation.

Special Provision for Accommodation Controller Quarters

Government employees occupying houses provided by the Accommodation Controller and paying rent higher than the prescribed Government quarter rent are eligible to receive the excess amount as House Rent Allowance, subject to the maximum HRA admissible under the rules.

Revised City Compensatory Allowance (CCA)

Along with the revision of House Rent Allowance (HRA), the Government of Tamil Nadu also revised the City Compensatory Allowance (CCA) payable to eligible Government employees under G.O.Ms.No.305, Finance (Pay Cell) Department, dated 13 October 2017.

The Government included the cities of Tiruppur and Erode along with the existing eligible cities for the purpose of City Compensatory Allowance. The revised CCA became effective from 1 October 2017.

Revised City Compensatory Allowance (CCA) Table

Revised Pay Range (₹)City Compensatory Allowance (₹ per Month)
Chennai & 32 km Surrounding AreaCoimbatore, Madurai, Salem, Tiruchirappalli, Tirunelveli, Tiruppur & Erode (16 km Radius)
Below ₹20,600360180
₹20,601 – ₹30,800500260
₹30,801 – ₹41,100800400
₹41,101 & Above1,200720

The revised CCA is payable according to the employee’s revised pay range and place of posting.

Who is Covered by G.O.Ms.No.305?

The Government Order applies to:

  • Tamil Nadu Government employees
  • Government school teachers
  • Employees of Local Bodies
  • Teachers and staff of Aided Educational Institutions
  • Other employees covered under the revised Pay Matrix

The Government also stated that necessary amendments to the Tamil Nadu Special Pay and Allowances Rules would be issued separately.

TANGEDCO Adoption of G.O.Ms.No.305

Following the issuance of G.O.Ms.No.305, the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) examined the request made by employees’ unions and associations for adopting the Government Order relating to the recovery of rent for Board quarters.

Accordingly, the Corporation issued (Per.) CMD TANGEDCO Proceedings No.135, dated 07 July 2018, adopting the Government’s revised rent recovery structure for employees occupying TANGEDCO Board quarters on a rental basis.

TANGEDCO Revised Rent Recovery Rates

Under the TANGEDCO proceedings, the recovery of rent from employees occupying Board quarters is based on the revised pay range and city classification.

Pay Range (₹)Grade-I(a) & Grade-I(b)Grade-IIGrade-IIIGrade-IV
₹18,201 – ₹26,2001.5%1.5%1%1%
₹26,201 – ₹48,7003%3%3%2%
₹48,701 & Above4%4%4%3%

The revised rent recovery is identical to the Government Order and became effective from 1 October 2017.

Important Relief for TANGEDCO Employees

TANGEDCO also provided the following important concessions:

  • No rent recovery shall be made from employees in Level-2 and below in the Pay Matrix.
  • No rent recovery shall be made from employees entitled to rent-free accommodation.
  • The revised recovery is effective only from 1 October 2017.
  • Rent already recovered for the period from 1 January 2016 to 30 September 2017 will not be revised.
  • The difference in rent between the old and revised rates for the period from 1 October 2017 till the issue of the proceedings will be recovered in suitable instalments.

These provisions were specifically incorporated in TANGEDCO Proceedings No.135.

Major Highlights of G.O.Ms.No.305

  • ✅ Revised House Rent Allowance from 1 October 2017.
  • ✅ Revised City Compensatory Allowance.
  • ✅ Five-category city classification retained.
  • ✅ Grade-I(b) expanded to include Salem, Tiruppur, Tiruchirappalli and Erode Urban Agglomerations.
  • ✅ Revised HRA in lieu of rent-free quarters.
  • ✅ Grade-C cities included under revised classification.
  • ✅ Revised rent recovery for Government quarters.
  • ✅ Applicable to Government employees, teachers, local bodies and aided educational institutions.
  • ✅ Adopted by TANGEDCO through Proceedings No.135 dated 07.07.2018.

Frequently Asked Questions (FAQs)

When did the revised HRA and CCA become effective?

Both the revised House Rent Allowance and City Compensatory Allowance became effective from 1 October 2017.

What is the maximum HRA under G.O.Ms.No.305?

The maximum normal House Rent Allowance is ₹8,300 per month for employees drawing ₹64,201 and above in Grade-I(a) cities.

What is the highest City Compensatory Allowance?

The highest CCA is ₹1,200 per month, payable to eligible employees posted in Chennai and surrounding areas.

Does the Government Order apply to teachers?

Yes. The Government Order applies to Government employees, teachers, local body employees and staff of aided educational institutions.

Has TANGEDCO adopted G.O.Ms.No.305?

Yes. TANGEDCO adopted the revised rent recovery provisions through Proceedings No.135 dated 07 July 2018.

7th Pay Commission G.O. 305 PDF Download

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