Reclassification/upgradation of Cities/Towns to grant HRA & TA to Central Govt Employees

Nellore town in AP is upgraded as "Y class city and the Central Govt employess working in Nellore will get 20% HRA  with effecr from 01.04.2014.

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.

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.

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" ( 30% HRA Cities)

1.Ahmadabad(UA) 2.Pune (UA)

 Cities to be upgraded/re-classified as "Y" (20% HRA Cities)

1.Nellore (UA) 2.Gurgaon (UA) 3.Bokaro Steel City (UA) 4.Gulbarga (UA) 5.Thrissur (UA)

6.Malappuram (UA) 7.Kannur(UA) 8.Kollam (UA) 9.Ujjain (M. Coprn.) 10.Vasai-Virar City (M. Corpn.) 11.Malegaon (UA) 12.Nanded-Waghala (M.Corp.) 13.Sangli (UA) 14.Raurkela (UA)

15.Ajmer (UA) 16.Erode (UA) 17.Noida (CT) 18.Firozabad (NPP) 19.Jhansi (UA) 20.Siliguri (UA)

21.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): 

1.Patna (UA) 2.Kochi (UA) 3.Indore (UA) 4.Coimbatore (UA) 5.Ghaziabad (UA)

Source : PIB Release ID :122151