HRA – Greater Noida is ‘Z’ class place (10%)

Department of Expenditure, Ministry of Finance has clarified that House Rent Allowance applicable to Greater Noida is only at ‘Z’ class rates (i.e at the rate of 10%) as it was unclassified city prior to implementation of 6CPC.

The Office Memorandum No: 2(13)/2008-E.II(B) dated 29.08.2008 issued for the purpose of revising HRA consequent on implementation of sixth pay commission recommendations, specified that those cites which were unclassified for the purpose of HRA prior to 6CPC would be classified as ‘Z’.

Click here to read the Office Memorandum No: 2(13)/2008-E.II(B) dated 29.08.2008

Now, in the present office memorandum No: 2(8)/2012-E.II(B) dated 06.08.2012, Finance Ministry has referred the previous OM dated 29.08.2008 and held that Greater Noida would be classified as ‘Z’ city for the purpose of HRA.

The full text of this Office Memorandum dated 06.08.2012 is as follows

No. 2(8)/2012-E.II(B)

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, 6th August, 2012. 

OFFICE MEMORANDUM 

Subject:- Clarification on the admissibility of House Rent Allowance to the Central Government Employees posted at Greater Noida — regarding.

It has been observed that payment of HRA @ 30% of Basic Pay is being made by certain Ministries/ Departments to the Central Government employees posted at Greater Noida, in violation of the instructions issued by this Ministry in this regard, from time to time.

2. It is, therefore, clarified that Greater Noida was an ‘Unclassified town/place for the purpose of grant of HRA prior to 01.09.2008 and consequent upon the implementation of the recommendations of the 6th Central Pay Commission, it has been classified as “Z” class town/place w.e.f. 01.09.2008 vide this Ministry’s O.M. No.2(13)/2008-Ell(B) dated 29 08.2008 on grant of House Rent Allowance to the Central Government employees and classification of cities/towns for this purpose.

3. Financial Advisers of All Ministries/Departments are, therefore, requested to ensure the implementation of the aforesaid O.M. in letter & spirit.

(Anil Sharma)

Under Secretary to the Government of India