Based on the Census of 2011, the House Rent Allowance and Travel Allowance for Central Government employees of a few cities are going to be hiked.
At the cabinet meeting, under the leadership of Prime Minister Narendra Modi, it was decided that, based on the Census report of 2011, the status of 29 towns and small towns is going to be upgraded. Central Government employees employed in these cities and towns will be eligible to grant revised House Rent Allowance and Rravel Allowance with effect from April 1, 2014. This would cost the government exchequer an additional Rs.128 crores annually.
House Rent Allowance to Central Government employees is now calculated on the basis of the population census of 2001. The cities and towns are classified as X, Y, and Z, based on their population. Employees in these towns are eligible for 30%, 20% and 10% House Rent Allowances respectively.
Population census is conducted once every ten years. The most recent census was held in 2011. Official information and findings of the Census was sent by the registrar General & Census Commissioner to the Finance Ministry a long time ago.
There is no denial in the fact that the Confederation of Central Government Employees has been constantly demanding this upgrading. The Confederation had, on 28.04.2014, sent a letter to the Finance Ministry. The letter said that even though the 2011 Census Report CD was received, there is no official announcement from the Government in this regard. The letter also demanded that a revised HRA and TA be implemented immediately in the reclassification of cities and towns on the basis of 2011 Census. On 30.07.2014, the Finance Ministry had, in reply to the mail, said that steps are being taken to implement the revised HRA and TA rates to the Central Government employees of these cities and towns.