Much awaited policy for Housing Allowance of Ranks other than Commissioned Officers issued

Vide much awaited orders, the Government has finally notified new housing allowance rates for Ranks other than Commissioned Officers thereby replacing the existing ‘Compensation in lieu of Quarters’ (CILQ), as well as Family Accommodation Allowance (FAA) and Single in lieu of Quarters (SNLQ).

The rates would now be determined as follows:

If the concerned employee has dependents:

In field postings, he/she will be paid full House Rent Allowance (HRA) as paid to other employees at the Selected Place of Residence of his dependents. However if Government accommodation is available at the said place, then the HRA would not be paid.

In case of non-field postings, if the soldier is staying in the barracks due to functional requirements, the HRA would be paid at a rate reduced by 5% at the Selected Place of Residence of the dependents. In case the soldier is not staying in barracks, then full HRA shall be paid if Government accommodation is not available.

If the concerned employee has no dependents:

In case of field postings, full HRA as admissible to Class Z cities shall be admissible.

In case of non-field postings, if the soldier is staying in barracks, HRA would be paid at a rate reduced by 5% as applicable to the station of posting. In case the soldier is not staying in barracks, then full HRA would be admissible if Government accommodation is not available.

A soldier with dependents during his field posting or who is being made to stay in barracks during non-field postings due to functional requirements, shall remain eligible for accommodation for his dependents anywhere in India.  

The above instructions are as per recommendations of the Seventh Central Pay Commission rendered in Paragraph 8.7.26.