7th CPC House Rent Allowance – Finance Ministry issued orders with Classification of Cities

7th CPC House Rent Allowance – Finance Ministry issued orders with Classification of Cities, This orders shall be effective from 1st July, 2017

These orders will apply to all Civilian Employees of the Central Government. The orders will also apply to the Civilian Employees paid from the Defence Service Estimates. In respect of the Armed Forces Personnel and Railway Employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

Implementation of the recommendations of the Seventh Central Pay Commission relating to grant of House Rent Allowance (HRA) to Central Government employees.

No.2/5/2017-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, 7th July 2017

OFFICE MEMORANDUM

Subject: Implementation of recommendations of the Seventh Central Pay Commission relating to grant of House Rent Allowance to Central Government employees.

Consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission, the President is pleased to decide that, in modification of this Ministry’s O.M. No.2(37)-E.II(B)/64 dated 27.11.1965 as amended from time to time, O.M. No. 2(13)/2008-E.II(B) dated 29.08.2008 and O.M. No. 2/5/2014-E.II(B) dated 21.07.2015, the admissibility of House Rent Allowance (HRA) shall be as under:-

Classification of Cities and Towns	Rate of House Rent Allowance per month as a percentage of Basic Pay only
X	24 %
Y	16 %
Z	8 %

2. The rates of HRA will not be less than Rs. Rs. 5400, Rs. 3600 and Rs. 1800 at X, Y, and Z class cities respectively.

3. The rates of HRA will be revised to 27%, 18% & 9% for X, Y & Z class cities respectively when Dearness Allowance (DA) crosses 25% and further revised to 30%, 20% & 10% when DA crosses 50%.

4. The term “basic pay” in the revised pay structure means the pay drawn in the prescribed pay levels in the Pay Matrix and does not include Non-Practicing Allowance (NPA), Military Service Pay (MSP), etc or any other type of pay like special pay etc.

5. The list of cities classified as ‘X’, ‘Y’ and ‘Z’ vide DoE’s O.M. No.2/5/2014-E.II(B) dated 21.07.2015, for the purpose of grant of House Rent Allowance is enclosed as Annexure to these orders.

6. Special orders on 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 and HRA at par with Chandigarh (“Y” class city) to Panchkula, S.A.S. Nagar (Mohali) which have been allowed to continue vide Para ‘4’ of this Ministry’s O.M. No.2/5/2014-E.II(B) dated 21.07.2015 and O.M. No. 2/2/2016-E.II(B) dated 03.02.2017, shall continue till further orders.

7. All other conditions governing grant of HRA under existing orders shall continue to apply.

8. These orders shall be effective from 1st July 2017.

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

10. 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.

sd/-
(Annie George Mathew)
Joint Secretary to the Government of India

List of Cities / Towns Classified for Grant of House Rent Allowance to Central Government Employees

HRA Cities in Andaman & Nicobar Islands

No Classified Cities

HRA Cities in Andhra Pradesh & Telangana

HRA ‘X’ Cities in AP & Telangana

• Hyderabad (UA)

HRA ‘Y’ Cities in AP & Telangana

• Vijayawada (UA)
• Warangal (UA)
• Greater Visakhapatnam (M.Corpn.)
• Guntur (UA)
• Nellore (UA)

HRA Cities in Arunachal Pradesh

• No Classified Cities

HRA Cities in Assam

HRA ‘Y’ Cities in AP & Telangana

• Guwahati (UA)

HRA Cities in Bihar

HRA ‘Y’ Cities in Bihar

• Patna (UA)

HRA Cities in Bihar

HRA ‘Y’ Cities in Chandigarh

• Chandigarh (UA)

HRA Cities in Chhattisgarh

HRA ‘Y’ Cities in Chhattisgarh

• Durg-Bhilai Nagar (UA)
• Raipur (UA)

HRA Cities in Dadra & Nagar Haveli

• No Classified Cities

HRA Cities in Daman & Diu

• No Classified Cities

HRA Cities in Delhi

HRA ‘X’ Cities in Delhi

• Delhi (UA)

HRA Cities in Goa

• No classified cities

HRA Cities in Gujarat

HRA ‘X’ Cities in Gujarat

• Ahmadabad (UA)

HRA ‘Y’ Cities in Gujarat

• Rajkot (UA)
• Jamnagar (UA)
• Bhavnagar (UA)
• Vadodara (UA)
• Surat (UA)

HRA Cities in Haryana

HRA ‘Y’ Cities in Haryana

• Faridabad* (M.Corpn.)
• Gurgaon* (UA)

HRA Cities in Himachal Pradesh

• No classified cities

HRA Cities in Jammu & Kashmir

HRA ‘Y’ Cities in J&K

• Srinagar (UA)
• Jammu(UA)

HRA Cities in Jharkhand

HRA ‘Y’ Cities in Jharkhand

• Jamshedpur (UA)
• Dhanbad (UA)
• Ranchi (UA)
• Bokaro Steel City (UA)

HRA Cities in Karnataka

HRA ‘X’ Cities in Karnataka

• Bangalore / Bengaluru (UA)

HRA ‘Y’ Cities in Karnataka

• Belgaum (UA)
• Hubli-Dharwad (M.Corpn.)
• Mangalore (UA)
• Mysore (UA)
• Gulbarga (UA)

HRA Cities in Kerala

HRA ‘Y’ Cities in Kerala

• Kozhikode (UA)
• Kochi (UA)
• Thiruvananthapuram (UA)
• Thrissur (UA)
• Malappuram (UA)
• Kannur (UA)
• Kollam (UA)

HRA Cities in Lakshadweep

• No classified cities

HRA Cities in Madhya Pradesh

HRA ‘Y’ Cities in MP

• Gwalior (UA)
• Indore (UA)
• Bhopal (UA)
• Jabalpur (UA)
• Ujjain (M.Corpn.)

HRA Cities in Maharashtra

HRA ‘X’ Cities in Maharashtra

• Greater Mumbai (UA)
• Pune (UA)

HRA ‘Y’ Cities in Maharashtra

• Amravati (M.Corpn.)
• Nagpur (UA)
• Aurangabad (UA)
• Nashik (UA)
• Bhiwandi (UA)
• Solapur (M.Corpn.)
• Kolhapur (UA)
• Vasai –Virar City (M.Corpn.)
• Malegaon (UA)
• Nanded-waghala (M.Corpn.)
• Sangli (UA)

HRA Cities in Manipur

• No classified cities

HRA Cities in Meghalaya

• No classified cities

HRA Cities in Mizoram

• No classified cities

HRA Cities in Nagaland

• No classified cities

HRA Cities in Odisha

HRA ‘Y’ Cities in Odisha

• Cuttack (UA)
• Bhubaneswar (UA)
• Raurkela (UA)

HRA Cities in Puducherry (Pondicherry)

HRA ‘Y’ Cities in Pondicherry

• Puducherry / Pondicherry (UA)

HRA Cities in Punjab

HRA ‘Y’ Cities in Punjab

• Amritsar (UA)
• Jalandhar (UA)
• Ludhiana (M.Coprn.)

HRA Cities in Rajasthan

HRA ‘Y’ Cities in Rajasthan

• Bikaner (M.Corpn.)
• Jaipur (M.Corpn.)
• Jodhpur (UA)
• Kota (M.Corpn.)
• Ajmer (UA)

HRA Cities in Sikkim

• No classified cities

HRA Cities in Tamil Nadu

HRA ‘X’ Cities in Tamil Nadu

• Chennai (UA)

HRA ‘Y’ Cities in Tamil Nadu

• Salem (UA)
• Tiruppur (UA)
• Coimbatore (UA)
• Tiruchirappalli (UA)
• Madurai (UA)
• Erode (UA)

HRA Cities in Tripura

• No classified cities

HRA Cities in Uttar Pradesh

HRA ‘Y’ Cities in Uttar Pradesh

• Moradabad (M.Corpn.)
• Meerut (UA)
• Ghaziabad* (UA)
• Aligarh (UA)
• Agra (UA)
• Bareilly (UA)
• Lucknow (UA)
• Kanpur (UA)
• Allahabad (UA)
• Gorakhpur (UA)
• Varanasi (UA)
• Saharanpur (M.Corpn.)
• Nodia* (CT)
• Firozabad (NPP)
• Jhansi (UA)

HRA Cities in Uttarakhand

HRA ‘Y’ Cities in Uttarakhand

• Dehradun (UA)

HRA Cities in West Bengal

HRA ‘X’ Cities in West Bengal

• Kolkata (UA)

HRA ‘Y’ Cities in West Bengal

• Asansol (UA)
• Siliguri(UA)
• Durgapur (UA)

Click to view the order – HRA Order July 2017 PDF

*Only for the purpose of extending HRA on the basis of dependency.

Note: The remaining cities/town in various States/UTs which are not covered by Classification as ‘X’ or ‘Y’, are classified as ‘Z’ for the purpose of HRA.