Revised HRA Rates from January 2021 – IRTSA

Revised HRA Rates From January 2021 Not From July 2021 – IRTSA

The General Secretary of Indian Railways Technical Supervisors Association (IRTSA) Shri Harchandan Singh writes to the Ministry of Finance regarding the revision of rates of House Rent Allowance as per the recommendations of the 7th CPC. The rates of HRA shall be revised to 27%, 18% and 9% for X, Y & Z class cities with effect from 1st January 2021, the date on which rates of DA crossed 25%.

The complete text of the letter is reproduced and given below for your ready reference

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Website http://www.irtsa.net )

No:IRTSA/CHQ/Memo.2021-13

Date: 28.08.2021

Secretary
Department of Expenditure
Ministry of Finance, New Delhi.

Respected Sir,

Subject: Implementation of recommendations of 7th CPC relating to grant of House Rent Allowance (HRA) for central Government employees.
Ref: 1) Ministry of Finance, Department of Expenditure OM No.2/5/2017-E-II (B), dated 7th July 2017.
2) Ministry of Finance, Department of Expenditure ID Note No. 2/5/2017-EII (B),pt, dated 04.08.2021

1) After freezing payment of increased rates of Dearness Allowance (DA) and Dearness Relief (DR) for 18 months, the Government decided to pay additional installments of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for Central Government pensioners & family pensioners due on 01.01.2020, 01.07.2020 and 01.01.2021. DA & DR are paid at the rate of 28% pay & pension w.e.f. 1st July 2021.

2) While reiterating our demand for payment of frozen additional installment of DA & DR, 4% from 01.01.2020, 7% from 01.07.2020 and 11% from 01.01.2021 as arrears to the central Government employees and pensioners, we bring to your notice regarding payment of HRA at increased rate whenever rates of DA crosses 25%.

3) MoF, DoE O.M. dated 23rd April 2020 stated that additional instalments of Dearness Allowances payable to Central Government employees and Dearness Relief payable to Central Government pensioners due on 1st January 2020, 1st July 2020 and 1st January 2021 shall not be paid. This order is specific only about nonpayment of additional instalments of DA & DR for the period of 18 months, not mentioned about freezing increase in rates of any other allowances.

4) MoF, DoE O.M. dated 7th July 2017, clearly states that rates of HRA will be revised to 27%, 18% and 9% for X, Y & Z class cities whenever rates of DA crosses 25%.

5) MoF, DoF, in its ID Note No. 2/5/2017-EII (B), pt, dated 04.08.2021 told that no separate order will be issued to its O.M dated 7th July 2021 for increasing the rates of HRA whenever rates of DA crossed 25%. i.e HRA should be paid at increased rates w.e.f. 1st January 2021, the date on which rates DA crossed 25%.

6) But, contradicting its own orders dated 7th July 2017, ID Note of DoE allows increased rates of HRA only from 1st July 2021.

7) It is, therefore, requested that Rates HRA shall be revised to 27%, 18% and 9% for X, Y & Z class cities w.e.f. 1st January 2021, the date on which rates of DA crossed 25%.

Thanking you

Yours faithfully,

sd/-
Harchandan Singh,
General Secretary, IRTSA

Click to view the letter in PDF Format