If both husband and wife hold government jobs, who gets the HRA? The government has cleared up all confusion—find out the rules..
HRA Rules for Husband and Wife: If both husband and wife are Central Government employees working in the same city, a question often arises regarding the House Rent Allowance (HRA) once government accommodation is allotted. Can the other spouse still receive HRA after one of them has been allotted a government quarter? The Central Government has now provided a clear answer to this question in the Rajya Sabha.
According to the Ministry of Finance, if either the husband or the wife has been allotted government accommodation in the same city, the family is considered to have been provided with government housing. In such a scenario, the other spouse will not receive HRA because, according to the government, the family has already been provided with government accommodation and is not incurring rental expenses.
No HRA for the spouse if the other gets a government quarter
In response to a question raised in the Rajya Sabha, the Ministry of Finance stated that the objective of House Rent Allowance (HRA) is to assist Central Government employees—who have not been allotted government accommodation and are living in rented premises—in meeting their rental expenses.
According to the government, when both husband and wife are Central Government employees posted at the same location, and one of them is allotted government accommodation, the entire family is deemed to have been provided with government housing. Therefore, there is no provision to grant HRA separately to the other employee.
Why is HRA not granted? The government explains the rule.
The Ministry of Finance clarified that HRA is granted only when an employee has not been provided with government accommodation and is renting private accommodation. When one spouse is allotted a government quarter and the family resides in that government accommodation, no separate rental expense arises for the other spouse. For this reason, the other employee is not granted HRA.
Based on this, the Ministry of Finance stated in its reply that if both husband and wife are government employees at the same location and one of them has been allotted government accommodation, the family is considered to have government housing available. Consequently, the other employee is not eligible for HRA.
Will the government change this HRA rule? The question of why both husband and wife—when both are government employees—should not receive their respective allowances has long been raised. Employee organizations have also frequently brought up this issue. However, the Ministry of Finance informed the Rajya Sabha that the government has received no representations from government employees or their service associations regarding a reconsideration of this policy.
When the government was asked whether the HRA rules would be modified or reviewed to make them more equitable for couples where both spouses are government employees, the answer was a clear "no." In other words, the government currently has no proposal to change or reconsider this rule.
What if both are government employees and live in rented accommodation?
If both husband and wife are Central Government employees and neither has been allotted government accommodation, they can claim HRA while living in a rented house. However, they must meet the applicable government rules and eligibility criteria.
Meanwhile, if the couple is posted in different cities, HRA eligibility will be determined based on applicable government regulations. In such cases, the individual circumstances of both employees and the prescribed rules will be taken into account.
How much HRA is paid based on city categories?
While the government has not made any specific changes to the HRA rules regarding married couples, HRA rates have been adjusted based on the re-categorization of cities.
The government has updated the list of city categories for HRA purposes based on recent population data. Consequently, the category of certain cities has changed, impacting the HRA received by Central Government employees posted in those cities.
Currently, HRA rates are as follows:
Cities in Category X: 30% of basic pay.
Cities in Category Y: 20% of basic pay.
Cities in Category Z: 10% of basic pay.
Employees in cities upgraded to a higher category have benefited from increased HRA. Conversely, in cities where the category has been downgraded, employees will receive HRA in accordance with the new category. There is also a link between HRA and DA
The HRA rates for central government employees are linked to the Dearness Allowance (DA). Under the recommendations of the 7th Central Pay Commission, HRA rates are revised once the DA reaches a certain threshold.
Initially, HRA rates for cities categorized as X, Y, and Z were 24%, 16%, and 8%, respectively.
When DA crossed the 25% mark, HRA rates increased to 27%, 18%, and 9%.
Now, with DA having crossed the 50% mark, HRA rates have risen to 30%, 20%, and 10%. These are the rates currently in effect.
The objective is to ensure that HRA is adjusted over time to account for inflation and rising housing costs.
Understanding the HRA rules in simple terms
HRA is provided to compensate employees for rental expenses. If both spouses are central government employees posted in the same city and one of them has been allotted government accommodation, the government considers the entire family to have been provided with government housing; consequently, the other spouse does not receive HRA separately.
Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
