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.
30% HRA for Central Government Employees in
Pune and Ahmedabad from 01.04.2014 – Details of re-classification / upgradation
of cities for HRA and Transport Allowance
As
Pune and Ahmedabad Cities have exceeded 50 lakh population mark as per Census
2011, Government has upgraded these two cities to “X” grade city from “Y” grade
city, at par with Metros such as Chennai, Kolkata, Mumbai etc., for the purpose
of granting higher House Rent Allowance (HRA) to the extent of 30% to all
Central Government Employees including Defence Personnel and Railway Employees.
Likewise,
HRA at the rate of 10% granted until now to all Cental Government Employees
including Defence Peronnel and Railway Employees working in the following
cities will be increased to 20% as these cities have been re-classified and
upgraded from “Z” grade city to “Y” city based on Census 2011 Statistics.
|
City
|
Present Status
|
Status after re-classification
|
Present HRA Rate
|
Revised HRA Rate
|
|
Nellore (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Gurgaon (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Bokaro Steel City (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Gulbarga (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Thrissur (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Malappuram (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Kannur(UA)
|
Z
|
Y
|
10%
|
20%
|
|
Kollam (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Ujjain (M. Coprn.)
|
Z
|
Y
|
10%
|
20%
|
|
Vasai-Virar City (M. Corpn.)
|
Z
|
Y
|
10%
|
20%
|
|
Malegaon (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Nanded-Waghala (M.Corp.)
|
Z
|
Y
|
10%
|
20%
|
|
Sangli (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Raurkela (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Ajmer (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Erode (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Noida (CT)
|
Z
|
Y
|
10%
|
20%
|
|
Firozabad (NPP)
|
Z
|
Y
|
10%
|
20%
|
|
Jhansi (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Siliguri (UA)
|
Z
|
Y
|
10%
|
20%
|
|
Durgapur (UA)
|
Z
|
Y
|
10%
|
20%
|
The
existing Qualification population mark for X Grade city and Y Grade City is
more than 50 Lakh and Between 5 lakh and 50 Lakh respectively. Citeis with
population less than 5 lakh would be classified as Z Grade City.
Higher
Transport Allowance up to Rs. 3200 plus DA for five More Cities
Union
Cabinet has also upgraded following Cities to “A1 / A” Grade as far as granting
Transport Allowance to Central Government Employees. These Cities have attained
the Population mark of more than 20 lakh as per Census 2011.
|
City
|
Present
Transport Allowance
|
Present
Grade
|
Revised
Transport Allowance
|
Revised
Grade
|
|
Patna
(UA)
|
Rs.
400 to Rs. 1600
|
“Other
Places
|
Rs.
800 to Rs. 3200
|
A1
/ A
|
|
Kochi
(UA)
|
Rs.
400 to Rs. 1600
|
“Other
Places
|
Rs.
800 to Rs. 3200
|
A1
/ A
|
|
Indore
(UA)
|
Rs.
400 to Rs. 1600
|
“Other
Places
|
Rs.
800 to Rs. 3200
|
A1
/ A
|
|
Coimbatore
(UA)
|
Rs.
400 to Rs. 1600
|
“Other
Places
|
Rs.
800 to Rs. 3200
|
A1
/ A
|
|
Ghaziabad
(UA)
|
Rs.
400 to Rs. 1600
|
“Other
Places
|
Rs.
800 to Rs. 3200
|
A1
/ A
|
