In a written reply to an unstarred question in the Rajya Sabha on August 4, Minister of State for Finance Pankaj Choudhary said that HRA is provided to Central government employees who are not given government accommodation and incur expenses on hiring residential accommodation.
The clarification came in response to a question on the policy under which HRA is not paid to both spouses when both are government servants and are residing together in government-allotted accommodation.
Why is HRA not allowed in such cases?
The Finance Ministry said that when both spouses are government employees stationed at the same location and either of them is allotted government accommodation, the family is treated as having been provided government accommodation.
“Consequently, no expenditure is incurred by the other spouse on accommodation,” the ministry said.
Since HRA is meant to compensate employees for rent paid on residential accommodation, the allowance is not admissible in such cases.
No proposal to review the rule
The ministry also said it has not received any representations from government employees or service associations seeking reconsideration of the policy.
What this means for government employee couples
If both spouses are Central government employees and are posted at the same station:
- If neither spouse gets government accommodation, they may be eligible for HRA as per applicable rules.
- If either spouse is allotted government accommodation, the other spouse cannot claim HRA.
The restriction applies because the government considers the family as having access to official residential accommodation.
The clarification reinforces the existing HRA framework rather than introducing a new change in rules.
