Wednesday, September 11, 2013

Karnataka revised HRA for employees

The Hon’ble Chief Minister in the Budget Speech 2013-14 has announced the Government’s decision to re-classify the Urban and Rural areas in the State as A, B & C categories for the purpose of House Rent Allowance and to revise the rate of House Rent Allowance.
The revised rate will be effective from 1st October 2013

Population
Classification
Rate of HRA
as of basic
pay
25 lakh and above
A
30%
5 lakh and above but less than 25 lakh
B
20%
Less than 5 lakh
C
10%
2. The details of the places falling under each of the above three classifications are as under:-
"A" Class City
Bruhath Bangalore Mahanagara Palike
(Places situated within the BBMP limits as notified in Notification No, UDD 92
MNY 2006, dated: 16.01.2007)
"B" Class Cities
Mysore Municipal Corporationli-Dharwad Municipal Corporation
"C" Class Cities
All other places with a population of less than 5 lakh

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