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Wednesday, March 23, 2011

Re-classification of cities/towns for grant of House Rent Allowance

No.2 ( 13 ) / 2008-E.II ( B )
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, 4th March, 2011.


Subject: Decision of the Government on the recommendations of the sixth Central Pay Commission relating to re-classification of cities/towns for grant of House Rent Allowance (HRA).

The undersigned is directed to refer to para 6 of this Ministry’s O.M. of even number dated 29.08.2008 on the above mentioned subject, vide which the special dispensation for grant of HRA has been allowed to continue to (i) Faridabad, Ghaziabad, Noida & Gurgaon at “X” class city rates and (ii) Jalandhar Cantt., Shillong, Goa & Port Blair at “Y” class city rates and to state that the special dispensation allowed to Panchkula for grant of HRA at par with Chandigarh vide this Ministry’s O.M. No.2(2)/2001E.II(B) dated 16.06.2003, shall also continue.

2. In this context, it is also clarified that any other similar special dispensation allowed by this Ministry in the past in respect of other cities for grant of HRA at higher rates and not specifically mentioned in this Ministry’s O.M. of even number dated 29.08.2008, shall continue to apply, if the same has not been superseded / dispensed with or the existing classification of such city has not been revised to a higher classification on account of the population criteria, vide O.M. dated 29.08.2008.

3. These orders shall be effective from 1st September, 2008.

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

5. 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.


(Anil Sharma)

Under Secretary to the Govt. of India

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