Cabinet approves revision of Classification of Cities for the purpose of HRA and Transport Allowance

Cabinet approves revision of Classification of Cities for the purpose of HRA and Transport Allowance – Central Government Employees working in this cities are to get more HRA and Transport Allowance

Union Cabinet brought happy news to Central Government Employees today by upgrading as many as 2 cities to “X” grade and 20 cities to “Y” grade for the purpose of granting House Rent Allowance and upgraded as many as 5 Cities to “A-1”/ “A” grade for paying Transport Allowance

Transport Allowance on the basis of Classification of Cities

Employee Grade Pay	Rate of Transport Allowance per month
	In 13 Cities Classified as A1 / A earlier	Other Places
Grade Pay of Rs.5400 & above	Rs. 3200 + DA thereon	Rs. 1600 + DA thereon
1. Grade pay of Rs. 42000, Rs.4600 and Rs. 48002. Those drawing grade pay below Rs. 4200 but drawing Pay in the payband equal to Rs.7440 and above	Rs. 1600 + DA thereon	Rs. 800 + DA thereon
Grade Pay below 4200 and pay in pay band below Rs.7440	Rs. 600 + DA thereon	Rs. 400 + DA thereon

Click here for OM dated 29.08.2008 for grant of Transport Allowance as per 6th CPC implementation

House Rent Allowance Rate on the basis of Classification of Cities

Classification of Cities	Rate of House Rent Allowance
X	30%
Y	20%
Z	10%

Click here for OM dated 29.08.2008 for grant of House Rent Allowance as per 6th CPC implementation

Press Information Bureau

Government of India

Cabinet

30-May-2015 13:31 IST

Revision of the classification/upgradation certain cities/towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance and Transport Allowance to Central Government employees

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance, Department of Expenditure for reclassification/upgradation of certain cities/towns on the basis of Census-2011, for the purpose of grant of House Rent Allowance (HRA) and Transport Allowance to Central Government employees.

On the basis of the final population figures of Census-2011, two cities have qualified for being upgraded from ‘Y’ class to ‘X’ class and 21 cities have qualified for being upgraded from ‘Z’ to ‘Y’ class for the purpose of HRA. Six cities have qualified for being upgraded from “Other Places” to specified higher class for the purpose of Transport Allowance.

The revised classification of cities shall take effect from 01.04.2014. The impact on the exchequer on account of upgradation of 29 cities, would be approx. Rs.128 crore for the year 2014-15.

Background:

HRA and Transport Allowance are admissible to Central Government employees depending upon employees’ Basic Pay (including NPA where applicable)/Grade Pay and the classification of the city/town where they are posted. The existing classification of cities/towns in different classes viz. ‘X’, ‘Y’ and ‘Z’ for the purpose of HRA and 13 specified cities classified earlier as ‘A-1’/ ‘A’ and “Other Places” for the purpose of Transport Allowance, is as per the criterion recommended by the 6th Central Pay Commission. The existing qualifying limits of population for classification for HRA purpose is 50 lakhs & above for ‘X’, 5 – 50 lakhs for ‘Y’ and below 5 lakhs for ‘Z’ class city. Transport allowance is payable at ‘higher rates’ in 13 specified cities classified earlier as ‘A-1’ / ‘A’ (that is those cities having population of 20 lakhs & above) and at ‘lower rates’ in all other places.

The classification of cities/towns for this purpose is revised on the basis of their population as reflected in the decennial census report. The existing classification of various cities/towns is based on 2001 Census figures. The criterion of population for this purpose has been followed as recommended by the Central Pay Commissions.

Cities/towns to be upgraded on the basis of census-2011 for grant of House Rent Allowance

Cities to be upgraded/re-classified as “X”

Ahmadabad(UA)

Pune (UA)

Cities to be upgraded/re-classified as “Y”

Nellore (UA)

Gurgaon (UA)

Bokaro Steel City (UA)

Gulbarga (UA)

Thrissur (UA)

Malappuram (UA)

Kannur(UA)

Kollam (UA)

Ujjain (M. Coprn.)

Vasai-Virar City (M. Corpn.)

Malegaon (UA)

Nanded-Waghala (M.Corp.)

Sangli (UA)

Raurkela (UA)

Ajmer (UA)

Erode (UA)

Noida (CT)

Firozabad (NPP)

Jhansi (UA)

Siliguri (UA)

Durgapur (UA)

Cities/towns to be upgraded on the basis of census-2011 for grant of Transport Allowance

Cities to be added for higher rates of Transport Allowance (i.e. which have population of more than 20 lakh to qualify for earlier classification as “A-1”/ “A” as stipulated in O.M. No. 21(2)/2008-E.II(B) dated 29.8.2008):

Patna (UA)

Kochi (UA)

Indore (UA)

Coimbatore (UA)

Ghaziabad (UA)
Source: Press Information Bureau