Compensation in Lieu of Quarters (CILQ) where no Modifications are Proposed : Report of the Committee : 7th Pay Commission
4.5.3 Compensation in Lieu of Quarters (CILQ) – (Para 8.7.18 -27)
Existing Provisions: CILQ is a composite allowance, meant to compensate for hiring of house, furniture, electricity and water etc. It is payable to PBORs who are married and are >=25 years of age. PBORs have the option to choose CILQ or HRA, whichever is more beneficial. CILQ is also paid to similarly placed personnel of CAPFs and Indian Coast Guard at following rates:
For the balance, compensation is through the FAA, which was introduced by the VI CPC. It is payable at the lowest rate of HRA to all PBORs of Defence services, CAPFs and Indian Coast Guard who do not qualify for benefit of HRA or CILQ. In Ministry of Defence, it is granted at the rate of 10 percent of Basic Pay, while in Ministry of Home, it is granted at a flat rate of ₹1,050 per month.
Recommendations of 7th CPC: It is felt that the service rendered by PBORs of uniformed services needs to be recognized and their housing provisions simplified. The Commission, in the interactions it has had with the men on the ground at all field locations it has visited, has seen first hand that the lack of proper housing compensation is a source of discontentment among these employees. Hence, the following structure is recommended:
Note: The factors for reduction, contemplated by 7th CPC are given below: An employee with dependents, during field posting or staying in Barracks as functional requirement will be eligible for accommodation for his dependents anywhere in the country.
* Provided government accommodation is not available for the dependents at Selected Place of Residence. If government accommodation is available, no HRA is payable.
** Reduced HRA means rate of HRA applicable reduced by 5 percent. However, the reduced amount cannot be less than the lowest rate of HRA applicable to Class Z cities/towns. Allowance is available provided employee is required to stay in barracks as a functional requirement and government accommodation is not available for the dependents at Selected Place of Residence. If employee is staying in barracks by choice or government accommodation is available at Selected Place of Residence, no HRA is payable.
@ Reduced HRA means rate of HRA applicable reduced by 5%. However, the reduced amount cannot be less than the lowest rate of HRA applicable to Class Z cities/towns. Allowance is available provided employee is required to stay in Barracks as a functional requirement. If employee is staying in Barracks by choice, no HRA is payable.
# Provided government accommodation is not available, else no HRA is payable.
Demands:
I. Ministry of Home Affairs: This allowance may be extended to Company Commanders who are in the rank of Assistant Commandant / Deputy Commandant posted in the Ops duty or Field/ Border Out Posts (BOP).
II. Defence Forces: Personnel may be given the choice to choose between CILQ and HRA whichever is beneficial. However, Ministry of Defence has not made any recommendation in this regard.
Analysis and Recommendations of the Committee:
The Committee is of the view that a lot of analysis based on an understanding of the ground situation has gone into this recommendation of the 7 th CPC which will simplify the allowance structure relating to accommodation for uniformed services to a significant extent. Therefore, it may not be desirable to tinker with the recommendations at this stage. The Committee, therefore, recommends that the 7th CPC recommendations on CILQ may be accepted without any change.