HRA Rules: Classification of cities for the purpose of grant of HRA and rates of HRA

House Rent Allowance Rules: Classification of cities for the purpose of grant of HRA and rates of HRA. 

As per 7th pay commission recommendations Classification of cities for the purpose of HRA is based on the population of the area, as per the latest Census Report. On the basis of population, cities/towns have been classified for the purpose of grant of House Rent Allowance as under:

S. No.	Classification Cities/Towns	of	Population Criteria	Rate of I-IRA as per 7th CPC
1	x		50 lakhs & above	24%
2			5 Lakhs to 50 Lakhs	16%
3.	z		Below 5 Lakhs	8%

Note 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%.

HRA Master Circular