3 per cent hike in HRA for govt staff

3 per cent hike in HRA for govt staff

 The House Rent Allowance (HRA) of the State government employees working in certain small towns has increased by three per cent with retrospective effect from April 1, 2012.

The State government, on October 19, issued an order revising the population-based classification of cities and towns done for the purpose of calculating HRA of its employees, as per the recommendation of the Official Pay Committee.

All cities and towns were classified as ‘A,’ ‘B,’ ‘C,’ and ‘D’ categories, based on their population as per 1991 census figures. Now they have been classified, based on 2001 census figures.

Accordingly, about ‘D’ category 17 towns with above 50,000 and below five lakh population have now been revised as ‘C’ category. As a result, HRA for those working in those towns will go up from 7 per cent to 10 per cent, sources said.

The 17 towns identified are: Basavakalyan, Chikkaballapur, Chamarajnagar, Haveri, Ilkal, Jamakhandi, Kollegal, Koppal, Madikeri, Sagar, Shahabad, Sindhanur, Sira, Sirsi, Tiptur, Udupi and Yadgir.