Finance Ministry issued orders on upgradation of cities / towns on the basis of Census 2011 for the purpose of House Rent Allowance

Finance Ministry issued orders on upgradation of cities / towns on the basis of Census 2011 for the purpose of House Rent Allowance

The new and revised list of cities & towns has been declared by the Finance Ministry today for the purpose of House Rent Allowance on the basis of Census 2011.

House Rent Allowance to Central Government employees is now calculated on the basis of the population census of 2001. The cities and towns are classified as X, Y, and Z, based on their population.

Employees in these towns are eligible for 30%, 20% and 10% House Rent Allowances respectively.

Population census is conducted once every ten years. The most recent census was held in 2011.

Official information and findings of the Census was sent by the registrar General & Census Commissioner to the Finance Ministry a long time ago.

There is no denial in the fact that the Confederation of Central Government Employees has been constantly demanding this upgrading. The Confederation had, on 28.04.2014, sent a letter to the Finance Ministry.

The letter said that even though the 2011 Census Report CD was received, there is no official announcement from the Government in this regard. The letter also demanded that a revised HRA and TA be implemented immediately in the reclassification of cities and towns on the basis of 2011 Census.

On 30.07.2014, the Finance Ministry had, in reply to the mail, said that steps are being taken to implement the revised HRA and TA rates to the Central Government employees of these cities and towns.

Now, Finance Ministry issued orders on re-classification / upgradation of citites / towns on the basis of Census 2011 for the purpose of House Rent Allowance to Central Govt employees with effect from 1.4.2015.

G.I. Min. of Finance, Dept. of Exp. O.M.No.2/5/2014-E.II(B), dated 21.7.2015

Subject : Re-Classification / Upgradation of Cities / Towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance (HRA) to Central Government employees.

Reference is invited to this Department’s O.M. No.2(13)/2008-E.II(B) dated 29.08.2008 relating to grant of House Rent Allowance (HRA) to Central Government employees on the recommendations of the 6th Central Pay Commission (CPC) whereby a list of cities / towns classified as “X”, “Y” and “Z” for the purpose of grant of HRA was enclosed as Annexure.

The matter relating to re-classification of cities / towns on the basis of Census-2011 for the purpose of grant of HRA to Central Government employees has been considered by the Government.

2. The President is pleased to decide that in supersession of all the existing orders relating to classification of cities/towns for the purpose of grant of HRA to Central Government employees, cities/towns shall now be re-classified as “X”, “Y” and “Z” for the purpose of HRA as enumerated in the Annexure to these orders.

3. Consequent upon implementation of the recommendations of the 5th Central Pay Commission, certain cities / towns were placed in a lower classification as compared to their existing classification for HRA purpose, vide this Department’s O.M. No.2(30)/97-E.II(B) dated 03.10.97.

However, these cities/towns were allowed to retain their existing higher classification, vide Para 3 thereof; and further extended vide O.M. No.2(21)/E.II(B)/2004 dated 16.03.2005 & O.M. No.2(13)/2008-E.II(B) dated 07.01.2009. As other cities / towns to which protection of retaining earlier higher classification was allowed, got upgraded during the intervening period and as on date only two cities i.e. Ajmer in Rajasthan and Durgapur in West Bengal were retaining such protection.

Consequent upon upgradation of these two cities also on the basis of their population as per Census-2011, provisions contained in Para 3 of this Department’s O.M. No. 2(30)/97-E.II(B) dated 03.10.97 which Were allowed to further continue vide O.M. dated 16.03.2005 & 07.01.2009, stand withdrawn/discontinued.

4. Special orders allowing continuance of HRA at Delhi (‘X” class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar (“Y” class city) rates to Jalandhar Cantt., at “Y” class city rates to Shillong, Goa & Port Blair vide this Department’s O.M. No.2(13)/2008-E.II(B) dated 29.08.2008, and continuance of HRA at par with Chandigarh (“Y” class city) to Panchkula vide this Department’s O.M. No.2(13)/2008-E.II(B) dated 04.03.2011, shall continue to be applicable till the recommendations of 7th CPC are considered by the Government.

5. These orders shall take effect from 1st April, 2015.

6. The Orders will apply to all civilian employees of the Central Government. The orders will also be applicable to the civilian employees paid from the Defence services Estimates.

In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

7. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the comptroller & Auditor General of India.

8. Hindi version is attached.

Click to view the Classification of Cities and Towns