Transferring to special frontier areas such as the North Eastern Region, Union Territory of Ladakh, or the island territories of Andaman & Nicobar and Lakshadweep often compels civilian Central Government employees to maintain two separate domestic establishments. Recognizing this hardship, the Ministry of Finance administers a statutory dual housing dispensation known as Additional House Rent Allowance (Additional HRA).
Statutory Mandate & Ministry of Finance Orders
Under Department of Expenditure (DoE) OM No. 2/5/2014-E.II(B) dated 21st July 2017 and subsequent clarificatory OM No. 2/5/2017-E.II(B) dated 5th March 2019, civilian Central Government employees transferred to qualifying special regions are granted dual housing entitlements:
| Location / Station | Housing Mode | Statutory Admissibility |
|---|---|---|
| Duty Station (Special Region) | Rent-Free Quarter OR Private Rental | Entitled to rent-free government quarter OR standard HRA at posting station rate. |
| Family Station (Previous Station) | Private Accommodation (Rental / Own) | Entitled to Additional HRA at full X, Y, or Z rate of the family city. |
| Family Station (GPRA Quarter) | Retained Government Quarter | No Additional HRA; family retains GPRA quarter on normal license fee. |
Calculation Protocol & Rates Applicable
Under revised 7th CPC guidelines (and revised 8th CPC threshold structures where applicable), HRA rates are categorized as:
- X Class Cities (30% / 27%): Major metropolitan centers (Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Pune).
- Y Class Cities (20% / 18%): Tier 2 municipal corporations and state capitals.
- Z Class Locations (10% / 9%): All other small towns, border stations, and rural locations.
The calculation formula for combined monthly housing support is:
Total Monthly Housing Benefit = Duty Station HRA (if not in quarter) + Additional Family Station HRA
Two Worked Examples
Example 1: Officer Transferred from Delhi to Leh (Ladakh)
A civilian officer in Pay Level 10 with Basic Pay of ₹56,100 is transferred from New Delhi to Leh. The officer's family remains in New Delhi in private rented accommodation. At Leh, the officer stays in private rental quarters.
- Additional Family HRA (Delhi - X Class @ 30%): ₹56,100 × 30% = ₹16,830 per month.
- Duty Station HRA (Leh - Z Class @ 10%): ₹56,100 × 10% = ₹5,610 per month.
- Total Monthly Combined HRA: ₹16,830 + ₹5,610 = ₹22,440 per month.
Example 2: Officer in A&N Islands with Family in Lucknow
An engineer with Basic Pay of ₹78,800 is posted to Port Blair and is allotted a rent-free government bungalow. The family lives in Lucknow (Y Class city) in their own private house.
- Duty Station HRA: ₹0 (Occupying rent-free government accommodation).
- Additional Family HRA (Lucknow - Y Class @ 20%): ₹78,800 × 20% = ₹15,760 per month.
- Total Monthly Housing Disbursal: ₹15,760 per month.
Essential Verification Guidelines for DDOs
- Family Certificate: The employee must submit a declaration confirming that family members (spouse, dependent children, or parents) actually reside at the prior station.
- No GPRA Retention: A Non-Allotment / Vacation Certificate from the Directorate of Estates (DoE) at the previous station must be furnished to establish that government quarters have not been retained.
- Transfer Orders: The posting must have been ordered in public interest, not on own-request transfer.
Frequently Asked Questions
1. What is Additional HRA for Central Government special region postings?
Under Ministry of Finance Department of Expenditure OM No. 2/5/2014-E.II(B) dated 21st July 2017, civilian Central Government employees posted to North Eastern Region, Andaman & Nicobar Islands, Lakshadweep, or Ladakh who leave their families behind at their previous station or home town are granted Additional HRA for maintaining their families at the prior station.
2. How is Additional HRA calculated?
Additional HRA is calculated at the percentage rate applicable to the city or town where the employee's family actually resides (X Class = 30%/27%, Y Class = 20%/18%, Z Class = 10%/9% of basic pay).
3. Does the employee also get accommodation or HRA at the duty station?
Yes. At the duty station in the special region, the employee is entitled to either rent-free government accommodation OR standard HRA if residing in private rented accommodation. The Additional HRA for the family station is drawn concurrently.
4. What if the employee's family retains government quarters at the old station?
If the family is permitted to retain General Pool Residential Accommodation (GPRA) at the old station on payment of normal license fee, Additional HRA is not admissible for that family station.
5. Does this concession apply to CAPF or Defence personnel?
This specific OM applies to civilian Central Government employees. Armed Forces and CAPF personnel have separate schemes for family accommodation and Compensation in Lieu of Quarters (CILQ).
Official References & Statutory Orders
- Ministry of Finance (DoE) OM No. 2/5/2014-E.II(B) (21 July 2017): Special concessions to Central Government civilian employees posted to NER, A&N, Lakshadweep and Ladakh.
- Ministry of Finance (DoE) OM No. 2/5/2017-E.II(B) (5 March 2019): Clarification regarding admissibility of Additional HRA on posting to special regions.
- DoE OM No. 2/5/2017-E.II(B) (7 July 2017): Implementation of 7th CPC recommendations on House Rent Allowance (HRA) rates.