The State government has announced an extension of the House Rent Allowance (HRA) at 24 per cent of basic pay, capped at Rs 25,000. It includes all employees of the Secretariat and heads of departments (HoDs), until June 2025.
Secretary (Finance) M Janaki issued the order on Monday, 29 July.
In January 2022, the government had implemented the 11th Pay Revision Commission (PRC) recommendations. At that time, the HRA was revised to 24 per cent of basic pay with a maximum limit of Rs 25,000 for employees of the Secretariat and HoDs, effective from 1 January, 2022, to June 2024.
Due to the delay in the 12th PRC report, employees’ associations requested an extension of the HRA benefits beyond June 2024. After careful consideration, the government decided to extend the HRA at the same rate for an additional year, effective from 1 July, 2024.
House rent allowance is a critical component of an employee’s salary package, designed to help cover the cost of renting a home. It is a percentage of the basic salary, and the exact rate can vary depending on the employer’s policies and the employee’s location.
It is especially significant for employees working in urban areas where the cost of living and housing expenses are substantially higher. The allowance not only provides financial relief but also contributes to an employee’s overall job satisfaction and retention by addressing a fundamental need.
