Bhopal (Madhya Pradesh): After a 13-year wait, municipal employees in Madhya Pradesh are finally set to receive their long-pending House Rent Allowance (HRA).
Preparations are underway at the Bhopal Municipal Corporation (BMC) office and other municipal bodies across the state to process payments.
According to officials of the Urban Administration Department, if things go as planned, the amount will be credited to employees’ accounts within this month.
This move comes after a recent announcement by the government regarding HRA implementation for state government employees. While the initial declaration was made on April 3, confusion prevailed over calculation and disbursement procedures.
A revised order issued on May 5 clarified that the HRA would be calculated as a percentage of employees’ current salaries, according to district-wise fixed rates.
HRA after 13-yr freeze
The state government offers various allowances across departments, such as disability, travel, risk, and tribal area allowances, along with daily, uniform washing and stitching allowances for police personnel. However, HRA had remained unrevised and unpaid since 2010, causing a major mismatch between housing costs and official provisions.With the April 1implementation of revised HRA rates, employees are finally seeing long-overdue financial relief.
Updated rules
Under updated rules, newly appointed employees receive 70% of their salary in year one, 80% in year two, and 90% in year three. After completing probation, full salary is paid from year four onward. HRA is now calculated on the actual salary drawn, at rates of 5%, 7%, or 10%, depending on city category.
What Bhopal staff will get
For instance, an employee posted in Bhopal and earning Rs 15,000 per month would receive Rs 1,500 as HRA, based on the 10% city rate. Rates vary depending on the government’s classification of cities across Madhya Pradesh.
