Grant of compensation in lieu of rent free accommodation

Grant of compensation to Employees who are entitled for Rent Free Accommodation – Amount equivalent to Licence Fee and HRA will be granted as compensation

No. 2/1/2014-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, 21st February, 2014.

Subject:- Grant of compensation in lieu of rent free accommodation.

The undersigned is directed to refer to this Ministry’s O.M No 2(7)/1997-E. 11(8) dated 14.03.2008 on the subject mentioned above and to say that consequent upon revision of rates of licence fee for residential accommodation under Central Government all over the country w.e.f. 01.07.2010 and also w.e.f. 01.07.2013 vide Government of India, Ministry of Urban Development (Directorate of Estates) OM.No.18011/1/2009-Pol.III dated 28.04.2011 and O.M No 18011/1/2013-Pol.III dated 21.11.2013 respectively, the question of revision of the amount of compensation in lieu of Rent Free Accommodation in so far as it relates to the component of licence fee has been under consideration of the Government for some time.
2. The matter has been considered and the President is pleased to decide that the Central Government employees who are entitled to the facility of rent free accommodation in accordance with the Ministry of Urban Development (Directorate of Estates) O.M. No.12/11/60-ACC-l dated 02.08.60 and who have not been provided with such accommodation, will be entitled to compensation in lieu of rent free accommodation as under:-


(i) the lowest amount charged as licence fee for the entitled type of accommodation as fixed w.e.f. 01.07.2010 & w.e.f. 01.07.2013 in terms of Government of India, Ministry of Urban Development (Directorate of Estates)’s above mentioned OMs dated 28.04.2011 and 21.11.2013 respectively; and
(ii) House Rent Allowance admissible to corresponding employees in that classified city in terms of this Ministry’s O.M. No.2(13)/2008-E.ll(B) dated 29.08 2008 as amended from time to time.
3. These orders take effect from 01 .07.2010 & 01 .07.2013 with reference to Dte. of Estate’s O.Ms. ibid dated 28.04.2011 and 21.11.2013 respectively, ie. the dates from which the flat rates of licence fee were revised.
4. All other conditions, laid down in this Ministry’s O.M. No 11015/4/86-E.ll(B) dated 19.02.87, 22.05.87 and 04.05.88 shall continue to be applicable, while regulating grant of compensation in lieu of rent free under these orders.
5. In so far as the persons serving under the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India .
(A. Bhattacharya)
Under Secretary to the Govt. of India

Download DOPT Office Memorandum No. 2/1/2014-E.II(B) dated 21.02.2014

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