INDIAN RAILWAY ESTABLISHMENT CODE

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CHAPTER 17
HOUSE RENT AND COMPENSATORY (CITY) ALLOWANCES

 1701. (1) The amount of a compensatory allowance shall be so regulated that, on the whole, it is not a source of profit to the recipient.

(2)  A compensatory allowance may be withdrawn or reduced by the President, if he is satisfied that the circumstances justify such a withdrawal or reduction.

(3) The President may, by general or special orders, sanction the grant of compensatory allowance in any case or any class of cases and also prescribe the conditions subject to which the allowance may be drawn, Except as otherwise provided by such orders, the drawal of the allowance shall be regulated by these rules.

1702   The rates of Compensatory (City) Allowance which may be granted with effect from 1.8.1997 to Railway servants stationed in ‘A-1’, ‘A’, ‘B-1’ and  ‘B-2’ class cities are given below :-

                                                                                                                                                                                                                                                                       

* Pay Range (Basic Pay)

Amount of Compensatory (City) Allowance in class of cities 

(Rs. Per month)

 

A-1

A

B-1

B-2

(1)

(2)

(3)

(4)

(5)

Below Rs.3000 p.m

90

65

45

25

Rs.3000 p.m. to Rs.4499 p.m

125

95

65

35

Rs.4500 p.m to Rs.5999 p.m

200

150

100

65

Rs. 6000 p.m and above

300

240

180

120

 

* In the revised scales of pay as per Railway Services (Revised Pay) Rules, 1997.

 

NOTE – 1.  Provided that in the case of a railway servant who is allowed the concession of free boarding and lodging as a condition of service, Compensatory (City) Allowance shall be limited to half the amount of the allowance specified above.

                       

2.          A Compensatory (City) Allowance may be granted to a railway servant whose place of duty is situated within the qualifying area of the station for which the allowance has been prescribed.”

 

( Authority : Railway Board’s letter No.E(P&A)II-97/HRA-19 dated 3.10.2005).

 

1703. The rates of House Rent Allowance which may be granted with effect from 1.8.1997 to Railway servants stationed in    ‘A-1’, ‘A’, ‘B-1’, ‘B-2’, ‘C’ class and unclassified cities are given below:-

 

Classification of cities/ towns

Rates of House Rent Allowance

 

A-1

 

 

30 %  of actual basic pay drawn

 

A

 

 

15 % of actual basic pay drawn

 

B-1

 

 

15 % of actual basic pay drawn

 

B-2

 

 

15 % of actual basic pay drawn

 

C

 

 

7.5 % of actual basic pay drawn

Unclassified

5 % of actual basic pay drawn.

 

 

House Rent Allowance at the above rates shall be admissible to all Railway servants (other than those provided with Government owned/hired accommodation) without reference to the quantum of rent paid, without requiring them to produce any rent receipts. Such railway servants shall, however, be required to furnish a certificate that they are incurring some expenditure on rent/ contributing towards rent. House Rent Allowance at the above rates shall also be admissible to Railway servants living in their own houses subject to their furnishing a certificate that they are paying/ contributing towards house or property tax or maintenance of the house.

 

NOTE : Where House Rent Allowance has been allowed under special orders, the same shall be given as admissible in A-1, A,  B-1, and B-2 cities, as the case may be, until issue of orders to the contrary.”

 

( Authority : Railway Board’s letter No.E(P&A)II-97/HRA-19 dated 3.10.2005).

1704. For the purposes of these orders: --

  (a)         Pay would be as defined in Rule 103(35)(i)–R.I and in the Railway Services (Revised Pay) Rules 1997 would also include stagnation increment (s) and non-practising allowance.  In the case of those railway servants who opt to retain the pre-revised scales of pay in existence prior to 1-1-1996, it will include, in addition to pay in the pre-revised scale, dearness allowance and interim relief appropriate to that pay admissible under orders in existence on 1-1-1996. In case of Running staff, pay shall include the pay element in running allowance as determined by administrative orders from time to time.”

 ( Authority : Railway Board’s letter No.E(P&A)II-97/HRA-19 dated 3.10.2005)

(b)  “Rent” means the charges paid by a Railway employee as consideration for accommodation occupied by him if he is a tenant and the rental value of the house as assessed for municipal purposes or otherwise, if he lives in his own house.  It will also mean the charges paid by a Railway employee who resides in a hostel or a boarding house or resides and boards in a private family as a paying guest.

(c)  “Family” means a Railway employee’s wife/husband, children and nother persons residing with and wholly dependent upon him/her. A husband/wife/child/parent having an independent source of income is not treated as a member belonging to the family of the Railway employee except when such income including pension (inclusive of temporary increase in pension and pension equivalent of death-cum-retirement benefits) does not exceed Rs. 250 per month.

1705. (a) (i) The limits of the locality within which these Rules apply shall be those of the named municipality, or corporation and shall include such of the suburban municipalities, notified areas or cantonments as are contiguous to the named municipality or corporation or other areas, as notifies form time to time.

(ii) The orders contained will automatically apply/cease to apply to areas which may be included within/excluded from the limits of the named municipality or corporation by the State Government concerned from the date of such inclusion/exclusion.

(iii)                  The classification of the localities into A-1, A, B-1 and B-2 for purposes of Compensatory (City) Allowance, and, into  A-1, A, B-1, B-2, C and unclassified localities for the purpose of House Rent Allowance shall be notified as per the administrative orders issued by the Ministry of Railways from time to time.”

 (Authority: Railway Board’s letter No.E(P&A)II-97/HRA-19 dated 3.10.2005).

(b) (i)  A Railway employee whose place of duty falls within the qualifying limits of a city shall be eligible for both the compensatory (city) and house rent allowances irrespective of whether his place of residence is within such limits or outside.

NOTE. --1.  Absence from place of duty during holidays, except those affixed to leave , will not affect the eligibility for the compensatory (city) and house rent allowances.

(2) (i) For the period of tour, a Railway servant’s entitlement to these allowances shall be regulated with reference to his headquarters.

(ii) Railway employees whose place of duty is in the proximity of a qualified city, and who, of necessity, have to reside within the city, may be granted compensatory (city) and house rent allowances admissible in the city.  The following conditions should be satisfied for grant of compensatory (city) and house rent allowances in the above cases:

(1)  the distance between the place of duty and periphery of the municipal limits of the qualified city does not exceed 8 kilometers; and

(2)  the staff concerned have to reside within the qualified city out of necessity i.e. for want of accommodation nearer their place of duty.

(iii) Railway employees working within a distance of 8 kilometers from the periphery of the municipal limits of a qualified city should be allowed house rent allowance at the rates admissible in that city even though they may not be residing within those municipal limits, provided.

(1)   that there is no other suburban municipality, notified area or cantonment within the 8 kilometers limit; and

(2)  that it is certified by the Collector/Deputy Commissioner, having jurisdiction over the area, that the place is generally dependent for its essential supplies e.g. foodgrains, milk, vegetables, fuel etc. on the qualified city.

Such a certificate would remain valid for a period of 3 years after which fresh certificate will be required.

(i)   The initial sanction for House Rent Allowance/Compensatory (City) Allowance for any locality based on the basis of the certificate issued by the Collector/Deputy Commissioner will be issued by Railway Board.

(ii)  Further extensions based on fresh certificates issued by the Collector/Deputy Commissioner will be granted by the General Manager/Addl. General Manager of the Railway concerned with the concurrence of their FA & CAO after ensuring that the conditions which weighed at the time of initial sanction continue to hold good.  The powers so delegated should  be exercised by the General Manager/Addl. General Manager personally and not be further redelegated.

(iii) In case of doubt, the matter may be referred to Railway Board.

1706. (a) (i) House Rent Allowance shall not be granted to a Railway employee if--

(a)  he does not incur any expenditure on rent for his accommodation;

(b)  he occupies accommodation provided by the Government;

(c)  he shares Government accommodation allotted rent-free to another Government servant;

(d) he/she resides in accommodation allotted to his/her parents/son/daughter by the Central Government/State Government, an autonomous public undertaking or Semi-Government organization such as a Municipality, Port Trust, Nationalized Banks, Life Insurance Corporation of India etc. and

(e) his wife/her husband has been allotted accommodation at the same station by the Central Government/State Government, an autonomous public undertaking or semi-Government organization such as municipality, Port Trust etc. whether he/she resides in that accommodation or he/she resides separately in accommodation rented by him/her.

(ii) A Railway servant who shares Government accommodation allotted to another Railway/Government employee (excluding those specified in (c), (d) and (e) of sub-rule (i) above shall be eligible for House Rent Allowance.

NOTE. -In cases where husband/wife/parents/children-two or more of them being Central Government servants or employees of State Governments, autonomous public undertakings or semi Government organizations like Municipality, Port Trust, Nationalized Banks, Life Insurance Corporation of India etc., share accommodation allotted to another Government servant, house rent allowance will be admissible to only one of them, at their choice.

The term ‘accommodation’ includes the accommodation allotted to the employees of State Governments, autonomous public undertakings, semi-Government organizations such as Municipality, Port Trust etc.

1707. (i) A Railway employee will be entitled to draw Compensatory (City) Allowance and House Rent Allowance during leave at the same rates at which the allowances were drawn before he/she proceeded on leave in respect of total leave of all kinds (except terminal leave, whether running concurrently or not with the notice period) not exceeding 180 days and if the actual duration of leave exceeds the period, the allowances would be payable during the first 180 days of the leave.

(ii) The limit of 180 days shall be extended to 8 months for the purpose of grant of these allowances in the case of Railway servants suffering from T.B., Cancer or other ailments during the period of their leave taken on medical certificate when such certificates are in the forms prescribed.  It is immaterial whether the leave is on medical certificate from the very commencement or is in continuation of other leave as defined in (i) above. In the case of employees suffering from T.B., Cancer or other ailments, who remain on leave for a period exceeding 8 months, House Rent Allowance and City (Compensatory) Allowance for the period of leave beyond 8 months, may be granted by the General Managers in consultation with FA & CAO subject to fulfillment of usual conditions.  The General Managers at their discretion may delegate these powers to the Chief personnel Officers or other Heads of Department if no post of Chief Personnel Officer exists.

(iii)  Drawl of these allowances during the period of leave in excess of 180 days availed of on grounds other than those specified in sub-rule (ii) above, shall be subject to the Railway employee certifying that:--

(i)   he or his family or both continued for the period for which Compensatory (City) Allowance is claimed to reside at the same station from where he proceeded on leave.

(ii)  he continued for the period for which house rent allowance is claimed, to retain the house of the same station whether within the qualifying limits or in an adjoining areas from where he proceeded on leave and paid rent for it and did not sublet whole of it.

NOTE. -1.  In the case of Railway servants who are originally granted leave on medical certificates exceeding 180 days and have ultimately to retire from Government service on grounds of invalidity, the entire leave thus becoming leave preparatory to retirement, the recovery of compensatory (city) and house rent allowances already drawn need not be effected.

2.   The drawl of these allowances during periods of vacation whether combined with leave or not, shall be regulated in the same way as during leave.

3.   In cases, where a Railway servant who is sanctioned leave whether on medical grounds or otherwise, does not join duty after availing himself of such leave, and resigns, he shall not be eligible for Compensatory (City) and House Rent Allowances for the entire period of such leave.  The competent authority concerned shall ensure that the entire amount drawn on this account is recovered before resignation, etc. is accepted.

(Board’s letter No. E (S)66/CPC/AL/10, dt. 13-7-66 and PC-60/HRA-1/MOF/6 dt. 11-2-71.)

1708.  The grant of Compensatory (City) Allowance and House Rent Allowance to a Railway employee under suspension shall be regulated with reference to Rule 1342 (FR-53) and Rule 1343 (FR-54) of Indian Railway Establishment Code Vol.II, subject to the employee furnishing similar certificate as prescribed in Rule 1707 (iii) above.

1709. In case of temporary transfer, a Railway employee shall draw Compensatory (City) Allowance and House Rent Allowance at the same rate at which he was entitled to them at the time of transfer provided-

(i)  the authority sanctioning the temporary transfer certifies that the Railway employee is likely, on the expiry of the transfer, to return to duty at the station from which he proceeded on transfer or to another station at which he will be entitled to an allowance of the same nature; and

(ii)   the Railway employee furnishes a certificate similar to the certificate prescribed in Rule 1707 (iii) above.

1710.  Railway employees going abroad on deputation shall be eligible to draw Compensatory (City) Allowance and House Rent Allowance at the rates admissible to them from time to time at the station from where they proceeded abroad on deputation in the following manner:-

(i)   Case of deputation abroad not exceeding one year. --Compensatory (City) Allowance and House Rent Allowance will be admissible for the entire period of deputation subject to the employee furnishing a similar certificate as prescribed in Rule 1707 (iii) above.

(ii)  Cases of deputation abroad exceeding one year. --A Railway employee proceeding on deputation abroad for a period exceeding one year will be eligible for Compensatory (City) Allowance/House Rent Allowance till such time as the family remains at the last place of his duty, subject to the employee furnishing a similar certificate as prescribed in Rule 1707 (ii) above.  In the event of an employee applying for family passage to the place of deputation abroad or for Transfer Traveling Allowance in respect of his family’s journey from the headquarters in India to home town or any other station, he will not be required to refund the amount of Compensatory (City) Allowance/House Rent Allowance upto the date upto which the family actually resides at the last Headquarters of the employee in India.

(iii) Deputation initially not exceeding one year but subsequently extended beyond one year. --Compensatory (City) Allowance and house rent allowance will be admissible upto the date of orders extending the period of deputation beyond one year.  Thereafter, the allowance shall be admissible as per sub-para (ii) above.

1711. During joining time, a Railway employee shall continue to draw Compensatory (City) Allowance and House Rent Allowance at the same rates at which he was drawing these allowances at the station from where he was transferred.  In cases where joining time is affixed to leave, the joining time shall be added to the period of 180 days referred to in Rule 1707 above.

1712. The grant of Compensatory (City) Allowance and House Rent Allowance in the case of re-employed pensioners, shall be regulated as indicated below:-

(i)  In the case of re-employed Pensioner, the allowances would be granted with reference to the pay fixed on re-employment before deduction of the non ignorable part of the pension. In the case of those re-employed pensioners whose initial pay is fixed by ignoring the full pension which they receive as pensioners, the pay that will be taken into account for fixing of allowances will be the pay which they get on re-employment.  Pension will not be added to this pay for the purpose of calculation of the allowances.

(ii)  Deleted

(Authority:- Railway Board's letter No. E(G)99 EM 1/2 dated 2.11.01)

1713.  (a) A Railway employee who is deputed for training abroad under the various training schemes sponsored by the Govt. of India or operated through non-official channels, shall be entitled to draw Compensatory (City) Allowance and House Rent Allowance during the entire period of such training at the rates admissible to him from time to time at the station from where he was deputed abroad for training subject to the production of similar certificates as prescribed in Rule 1707 (iii).

(b) A Railway employee who is sent on training in India and whose period of training is treated as duty under rule 103 (16), shall be entitled to draw during the entire period of such training Compensatory (City) Allowance and House Rent Allowance at the rates admissible to him, from time to time, at either the place of training or the place of duty from where he proceeded on training, whichever is more favorable to him.  For claiming the allowances admissible at the place of duty from where the Railway employee proceeded on training, the certificate prescribed in Rule 1707 (iii) will have to be furnished.

NOTE. --A Railway employee who is allowed Traveling allowance as on tour and draws daily allowance at the place of training, will draw House Rent Allowance and Compensatory (City) Allowance only at the rates admissible to him at the headquarters from where he proceeded on training.

1714.  Drawl of allowances during the periods specially treated as duty. --The grant of compensatory allowance during any period specially treated as duty under Rule 103 (16) of the Indian Railway Establishment Code, Vol.I, shall be regulated by general or special orders  as may be issued by the President in this behalf.

1715. Railway employees to whom the rules do not apply.--The rules in this chapter shall not apply to-

(i)   Railway servants appointed on ad-hoc rates of pay who are not specifically allowed under the orders sanctioning their appointments to draw allowance admissible under these rules or whose pay has been fixed with reference to the conditions of living and high rents prevailing at the place where they are stationed;

(ii)  Railway employees specifically exempted from the operation of these rules by the President.

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