MP Power Management Company Revises House Rent Allowance and Ex-Gratia Grant for Employees

In a significant move benefitting employees, the Madhya Pradesh Power Management Company has announced a revision in the House Rent Allowance (HRA) structure for its personnel, aligning with the recent hike granted to state government employees. The revised allowances, effective from April 1, 2025, were outlined in a formal order released by the company.

House Rent Allowance (HRA) Revised Based on City Population

The revised HRA will now be disbursed based on the population of the city in which the employee resides, as per the Pay Revision Rules 2017. The revised rates are as follows:

• 10% of basic salary for personnel residing in cities with a population of 7 lakh or more

• 7% of basic salary for cities with populations between 3 lakh and 7 lakh

• 5% of basic salary for cities with populations below 3 lakh

These rates will apply to all eligible regular employees of the company. The company has clearly stated that these guidelines mirror the ones issued for government servants but substitute the term “company employee” accordingly.

Eligibility Criteria for HRA and Exclusions

The order also clarifies that employees residing in company-provided housing, or those who are provided rent-free accommodation, or receive any allowance in lieu of such accommodation, will not be eligible for HRA benefits. Similarly, contractual, ad-hoc, permanent daily wage employees, or those appointed under non-regular employment structures, are excluded from the allowance.

Ex-Gratia Grant Increased to ₹1.25 Lakh for Deceased Employees’ Families

In another employee-centric decision, the MP Power Management Company has also revised the ex-gratia grant offered to the dependent families of employees who pass away while in service. The revised maximum amount is set at ₹1.25 lakh, which is also capped at a maximum of six times the pay payable under the Pay Revision Rules 2017.

This order too will take effect from April 1, 2025, and other existing conditions regarding the ex-gratia grant will continue as before.

These policy updates reinforce the company’s commitment to employee welfare and are expected to benefit hundreds of personnel across Madhya Pradesh.