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 01.04.2015. 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)