House Rent Allowance according to revised Pay Scale 2005 dt 04.08.2007
OFFICE MAMORANDUM
Subject: House Rent Allowance
In response to your inquiry dated June 21, 2007, under reference number PR-C/House-Rent/Vol.VIII/CD-1553, regarding House Rent Allowance (HRA) adjustments in line with the revised pay scales of 2005, please find the following clarifications:
Historical Context and Policy Adjustments
Previously, the House Rent Allowance for officers and officials who had received a move-over prior to November 27, 1994, was calculated based on these move-over scales. Meanwhile, those not benefiting from the move-over were compensated according to their original pay scales. Notably, the HRA was frozen at the amount drawn as of May 31, 1994. This measure ensured that the allowance did not increase with the move-over adjustments.
With the implementation of the Revision of Pay Scales, 2001, the move-over scheme was officially discontinued as of December 1, 2001. Subsequently, the HRA remained fixed, unaffected by further salary revisions until the next update.
Implementation of Revised Pay Scales 2005
The Revision of Pay Scales, 2005, marked a significant shift. Under this new scheme, the previously applied move-over scales were abolished. The policy aimed to streamline allowances in alignment with the updated pay scales, effectively ending the previous scheme of freeze and move-over.
From July 1, 2005, House Rent Allowance was recalculated and disbursed based on the new pay scales without reference to the discontinued move-over scales. This adjustment was in line with the policy’s intent to standardize allowances and ensure fairness across the board.
Clarification on House Rent Allowance Application
- Eligibility and Calculation: Effective from July 1, 2005, HRA will be applicable based on the revised pay scales. Employees who had previously benefited from move-over scales will now have their HRA recalculated according to their original or existing pay scales, reflecting the latest salary adjustments.
- Discontinuation of Previous Schemes: The previous schemes of move-over scales have been discontinued, meaning that allowances will no longer be calculated based on these old scales. The focus is now solely on the revised pay scales introduced in 2005.
- Implementation and Compliance: All officers and officials must ensure that their House Rent Allowance is updated to reflect the changes stipulated in the Revision of Pay Scales 2005. The revised calculations should be implemented from the effective date, ensuring compliance with the new policy framework.
Action Required
To align with these changes:
- Review and update the HRA calculations for all relevant employees to reflect the new pay scales effective from July 1, 2005.
- Ensure that all records and payments are adjusted accordingly to avoid discrepancies.
- Communicate these updates to all concerned parties to ensure transparency and understanding of the revised HRA policies.
For further assistance or queries regarding the revised pay scales and HRA adjustments, please refer to the enclosed policy letter dated September 22, 1986, for additional guidelines and procedural details. This document provides comprehensive insights into the policy changes and their implications.
Thank you for your attention to this matter. Please implement the above guidelines at the earliest to ensure compliance with the revised HRA regulations.
