Child Care Leave and HRA: Can You Still Get Higher Allowance After Transfer?

An employee was sanctioned higher HRA on transfer to a new station. During the period, the employee proceeded on child care leave. Will the employee be eligible for higher HRA? Please quote the relevant rule in this regard.

Till the time an employee is deputed or transferred to a new location where the cost of living is higher, in that case, until the employee is again deputed or transferred to a location where the cost of living is lower, the extra amount to compensate for expenses should be paid.

In all these cases, it is better to provide the employee with an extra allowance or salary head rather than giving more HRA, which can be very cumbersome to reduce if the employee is transferred to another location with a lower cost of living.

If in the Leave Application, the Employee has mentioned the Leave Address other than the Place of Posting; in such case, what would be the eligibility of Higher HRA. Anyhow, the employee would be paid HRA as applicable to the place of posting, but I feel the employee is not eligible for Higher HRA (i.e., Double HRA).

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Your question raises another question: are you from HR? You are paying higher HRA based on the location of the posting. When such an employee proceeds on leave and visits their hometown where HRA is comparatively lower, you cannot reduce the HRA. You can only reduce the HRA if they are transferred to another location with lower HRA. To be judicious, you cannot reduce it if the place of posting has not changed. This thought is also not justified.

Warm Regards,

Bharat Gera HR Consultant [Phone Number Removed For Privacy-Reasons]

Dear MPPK,

You are in a pool of doubts and clarity. You ask something, and when answered, you come up with another question. The HRA granted at a higher rate is to compensate for the market rate of that area. You need not worry about with whom the employee stays or why. You did not give an additional favor to the employee; rather, it is his right.

Thank you.