30% HRA for Ahmadabad and Pune and 20% HRA for 20 cities Finance Ministry issues orders

Higher HRA on the basis of Census 2011 – Two Cites (Ahmedabad and Pune) elevated to ‘X’ Class – HRA status of 20 other cites upgraded to ‘Y’ class

Finance Ministry’s Latest Office Memorandum for Re-Classification / Upgradation of Cities / Towns on the basis of Census 2011, provides that House Rent Allowance for Central Government Employees posted in Ahmadabad and Pune would be increased to 30% from the existing 20% with effect from 1st April 2015.

Like wise, the following Cities have been upgraded from ‘Z’ class cities to ‘Y’ class cities for the purpose of House Rent Allowance payable to Central Government Employees. HRA in respect of these cities increased to 20% from 10%
Nellore , Gurgaon , Bokaro Steel City , Gulbarga , Thrissur , Malappuram , Kannur, Kollam , Ujjain (M. Coprn.), Vasai-Virar City , Malegaon, Nanded-Waghala Sangli , Raurkela , Ajmer , Erode , Noida , Firozabad , Jhansi , Siliguri , and Durgapur

No.2/8/2014-E.II(B)

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, 21st July, 2015

Subject : Re-Classification / Upgradation of Cities / Towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance (HRA) to Central Government employees.

Reference is invited to this Department’s O.M. No.2(13)/2008-E.II(B) dated 29.08.2008 relating to grant of House Rent Allowance (HRA) to Central Government employees on the recommendations of the 6th Central Pay Commission (CPC) whereby a list of cities / towns classified as “X”, “Y” and “Z” for the purpose of grant of HRA was enclosed as Annexure. The matter relating to re-classification of cities / towns on the basis of Census-2011 for the purpose of grant of HRA to Central Government employees has been considered by the Government.

2. The President is pleased to decide that in supersession of all the existing orders relating to classification of cities/towns for the purpose of grant of HRA to Central Government employees, cities/towns shall now be re-classified as “X”, “Y” and “Z” for the purpose of HRA as enumerated in the Annexure to these orders.

3. Consequent upon implementation of the recommendations of the 5th Central Pay Commission, certain cities / towns were placed in a lower classification as compared to their existing classification for HRA purpose, vide this Department’s O.M. No.2(30)/97-E.II(B) dated 03.10.97. However, these cities/towns were allowed to retain their existing higher classification, vide Para 3 thereof; and further extended vide O.M. No.2(21)/E.II(B)/2004 dated 16.03.2005 & O.M. No.2(13)/2008-E.II(B) dated 07.01.2009. As other cities / towns to which protection of retaining earlier higher classification was allowed, got upgraded during the intervening period and as on date only two cities i.e. Ajmer in Rajasthan and Durgapur in West Bengal were retaining such protection. Consequent upon upgradation of these two cities also on the basis of their population as per Census-2011, provisions contained in Para 3 of this Department’s O.M. No. 2(30)/97-E.II(B) dated 03.10.97 which Were allowed to further continue vide O.M. dated 16.03.2005 & 07.01.2009, stand withdrawn/discontinued.

4. Special orders allowing continuance of HRA at Delhi (‘X” class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar (“Y” class city) rates to Jalandhar Cantt., at “Y” class city rates to Shillong, Goa & Port Blair vide this Department’s O.M. No.2(13)/2008-E.II(B) dated 29.08.2008, and continuance of HRA at par with Chandigarh (“Y” class city) to Panchkula vide this Department’s O.M. No.2(13)/2008-E.II(B) dated 04.03.2011, shall continue to be applicable till the recommendations of 7th CPC are considered by the Government.

5. These orders shall take effect from 1st April, 2015.

6. The Orders will apply to all civilian employees of the Central Government. The orders will also be applicable to the civilian employees paid from the Defence services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

7. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the comptroller & Auditor General of India.

8. Hindi version is attached.

sd/-

(Subash Chand)

Director

* Only for the purpose of extending HRA on the basis of dependency

Note:

The remaining cities / Towns in various cities / UTs which are not covered by classification as ‘X’ or ‘Y’ classified as “Z” for the purpose of HRA
Rate of House Rent Allowance applicable as per the Classification of Cities

Download Finance Ministry Office Memorandum No.2/8/2014-E.II(B) dated 21.07.2015