House Rent Allowance

           House Rent Allowance is an allowance which is given by the employer to his employee as compensation for residing at home in a city, where the actual workplace is located. House Rent Allowance is a kind of compensatory allowance.

          As we know the basic principle of compensatory allowance is that an employee should not consider it as a source of income or profit. In this article, we will discuss "House Rent Allowance" in detail:- 

House Rent Allowance

House Rent Allowance During Leave

          Leave means here that total leave of all kinds including without pay leave or extraordinary leave, half pay leave or any other kind of leave for a period not exceeding 180 days.
          Full House Rent Allowance is admissible if the total period of leave is not exceeding 180 days. But if in any case, the total period of leave is beyond 180 days then no House Rent Allowance is admissible. Few examples of this are as follows:-

• Suppose an employee has taken 130 days and after this, he has applied for another 50 days leave, which was sanctioned by the competent authority. Now the total period of leave is 180 days and hence he is eligible to avail claim house rent allowance.
• Suppose an employee has taken 190 days of leave at once then he is not entitled to house rent allowance.
• Now suppose an employee has taken 160 days and after this, he has extended his leave for further 40 days. In this case, he can claim house rent allowance for the period of 160 days only because the total period of leave including extension is 200 days which is beyond the limit of 180 days.

House Rent Allowance during Suspension

          As per clarification under rule 5.5 of Punjab Civil Service Rules volume 1 part 1, the house rent allowance being a compensatory allowance may be allowed to be drawn by a Government employee under suspension like other compensatory allowance, subject to the conditions laid down in rule 7.2(b), being satisfied.

House Rent Allowance on Transfer

         Assume an employee was posted at DC office, Ludhiana and he is residing here in accommodation provided by the Government. After a few months, he is transferred to the DC office, Mohali but he has been permitted to retain government accommodation at Ludhiana. After joining at Mohali, he starts living in a rented house. He submits his representation to the competent authority to avail House Rent Allowance as he is residing in a rented house. Now the question is that can he claim house rent allowance? as Government accommodation is provided to him at another station.

          To overcome this difficulty, let's read note 2 below rule 5.5 of Punjab Civil Service Rules volume 1 part 1:-

A Government employee who, on transfer, has been permitted to retain Government accommodation at the old station will be eligible for house rent allowance, in respect of new station, if othewise admissible, without regard to the fact whether he has been permitted to retain the Government accommodation at old station on payment of normal rent or penal rent.

As it is clear from the above, the employee can claim house rent allowance at Mohali although he has Government accommodation at Ludhiana.

House Rent Allowance if Government accommodation allotted 

          When the Government supplies a Government employee with a residence leased or owned by it, no house rent allowance admissible to him. Additionally, an employee has to pay a licence fee or we can say rent at the rate of five percent of his monthly emoluments.

Deduction of Licence Fee For Government Accommodation

          As per the Department of Finance letter no. 4/7/09-2FP1/402 Dated 18th August 2009 the rate of the licence fee to be charged from the employees who have been allotted government accommodation shall continue to be 5% of revised basic pay under The Punjab Civil Service's(Revised Pay) Rules,2009 and Non-Practising allowance, wherever applicable or the Standard Rent whichever is less.

Deduction of Licence  Fee in case of Suspension

          As we know that on the suspension of a government employee, a subsistence grant is paid to him which is half of the basic emoluments. Now if government accommodation is allotted to such a government employee then for the purpose of deduction of licence fee his subsistence grant should be considered as emoluments as per rule 5.33(vi) of Punjab Civil service Rules Volume 1 part 1. 

Permissible period for the retention of Government accommodation

According to Rule 5.51 and Government instructions in this regard, A house allotted to an employee may be retained on the happening of any events as described below in the table:-

Event	Permissible period for the retention of house
1.Resignation, Dismissal or removal from service, termination of service or unauthorized absence without permission	1 Month.
2.Transfer to another station	2 Months
3.Retirement or pre-mature retirement	4 Months
4.Transfer to an ineligible office at the same station	2 Months
5.Death of allottee	1 Year
6. Temporary transfer in India or transfer to a place outside India	6 Months
7. On foreign service in India	2 Months
8. Leave of any kind by the competent authority	for the period of leave sanctioned
9. On proceeding on training or study leave	for the full period of training or study leave

Proforma for drawal of House Rent Allowance

Proforma to be submitted by the employee for drawal of House Rent Allowance is as follows:-

Proforma for withdrawal of House Rent

To download in pdf click here.

Grant of House Rent Allowance in case of Family

In the case of Husband and wife 

Sometimes the question comes in our mind that whether house rent allowance is admissible to both husband and wife are residing in the same house and at the same station? The finance department of Punjab Government by its letter no. 10/44/89-FP1/4038 Dated 03-05-1990 decided that house rent allowance will be given to both husband and wife living in hired/ owned accommodation as per their entitlement subject to the fulfillment of other conditions for the drawal of the allowance.

In the case of Father and son/daughter.

Likewise the finance department of the Punjab Government by its letter no.7/39/90-2FP1/9673 dated 14-11-1990 decided that house rent allowance is admissible to both father and son/daughter living in hired or owned accommodation as per their entitlement subject to the fulfillment of other conditions for the drawal of the allowance.

References:-

Chapter 5 of Punjab Civil Service Rules Volume 1 part 1 especially the rules 5.2, 5.5, 5.23,5.29,5.33 and 5.51.

Department of Finance 

letter no. 4/7/09-2FP1/402 Dated 18th August 2009

letter no. 10/44/89-FP1/4038 Dated 03-05-1990

letter no.7/39/90-2FP1/9673 dated 14-11-1990

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