Revision of classification cities for the purpose of House Rent Allowance and Transport Allowance to Central Government employees
Revision of classification cities for the purpose of grant of House Rent
Allowance and Transport Allowance to Central Government employees
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: PIB News
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