Government Policy of House Rent Allowances (HRA) in India: Needfor a Sustainable Perspective

Rajesh Kumar

Rajesh Kumar Scientist, Central Institute of Mining and Fuel Research – Digwadih Campus, PO – FRI, Dhanbad – 828108, Jharkhand, India

Keywords: Government policy, HRA, Case study, CFRI, Pathetic condition

Abstract

House Rent Allowance policy in government organizations have been in force since the independence of
India. Government wants to provide residential quarters for their employees, so that employees could reach
on their duty in time. Due to non-availability of sufficient numbers of quarters, government arranged to
provide House Rent Allowances so that employee could afford a house on rent in the nearby office locality.
This was done after making a survey and more or less a practical market rate could be made available to the
employees. But due to coming of many new scenarios in the public, the HRA given could not compete with
the practical aspects of HRA. In last two pay commissions viz 6th& 7th the HRA policy was much lucrative.
Despite this all a review of the policy is required to make it more uniform and acceptable.