HRA and Cities Classification in India 2025: Insights into X, Y, and Z Categories

मकान किराया भत्ता गाइड 2025: शहरों का X, Y, Z में वर्गीकरण

HRA and Cities Classification 2025: The Government of India has established a classification system for all urban regions, categorizing them into three tiers for House Rent Allowance and two categories for Transport Allowance applicable to Central Government employees. These classifications are widely referred to as Tier-I, Tier-II, and Tier-III cities within India.

Additionally, this framework is applied to city segments based on their population size. For House Rent Allowance, urban areas are further classified into X Class, Y Class, and Z Class cities. In terms of Transport Allowance, these cities are categorized as either Higher TPTA cities or Other Places. This classification system plays a crucial role in determining the allowances provided to government employees according to their designated locations.

Classification of Indian Cities and Towns for HRA and TA 2025 Overview

TopicClassification of Indian Cities
BeneficiariesCentral Government Employees
HRA CitiesX-Class, Y-Class, Z-Class
TA CitiesHigher TPTA Cities & Other Places
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Classification of X-Class Cities for HRA 2025

  • Andhra Pradesh – Hyderabad (UA)
  • Delhi – Delhi (UA)
  • Gujarat – Ahmedabad (UA)
  • Karnataka – Bengaluru (UA)
  • Maharashtra – Greater Mumbai (UA), Pune (UA)
  • Tamil Nadu – Chennai (UA)
  • West Bengal – Kolkata(UA)

Classification of Y-Class Cities for HRA 2025

  • Andhra Pradesh – Vijawada (UA), Warangal (UA), Visakhapatnam (UA), Guntur, Nellore (UA)
  • Assam – Guwahati (UA)
  • Bihar – Patna (UA)
  • Chandigarh – Chandigarh (UA), S.A.S Nagar, Mohali
  • Chhattisgarh – Durg-Bhilai Nagar (UA), Raipur (UA)
  • Delhi
  • Gujarat – Rajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)
  • Haryana – Faridabad, Gurgaon (UA)
  • Jammu & Kashmir – Srinagar (UA), Jammu (UA)
  • Jharkhand – Jamshedpur (UA), Dhanbad (UA), Ranchi (UA), Bokaro Steel City
  • Karnataka – Belgaum (UA), Hubli-Dharwad, Mangalore (UA), Mysore (UA), Gulbarga (UA)
  • Kerala – Kozhikode (UA), Kochi (UA), Thiruvanthapuram (UA), Thrissur (UA), Malappuram (UA), Kannur (UA), Kollam (UA)
  • Madhya Pradesh – Gwalior (UA), Indore (UA), Bhopal (UA), Jabalpur (UA), Ujjain
  • Maharashtra – Amravati, Nagpur (UA), Aurangabad (UA), Nashik (UA), Bhiwandi (UA), Solapur, Kolhapur (UA), Vasai-Virar City, Malegaon (UA), Nanded-Waghala, Sangli (UA)
  • Orissa – Cuttack (UA), Bhubaneswar (UA), Raurkela (UA)
  • Pondicherry – Pondicherry (UA)
  • Punjab – Amritsar (UA), Jalandhar (UA), Ludhiana
  • Rajasthan – Bikaner, Jaipur, Jodhpur (UA), Kota (UA), Ajmer (UA)
  • Tamil Nadu – Salem (UA), Tirupur (UA), Coimbatore (UA), Tiruchirappalli (UA), Madurai (UA), Erode (UA)
  • Uttarakhand – Dehradun (UA)
  • Uttar Pradesh – Moradabad, Meerut (UA), Ghaziabad (UA), Aligarh, Agra (UA), Bareilly (UA), Lucknow (UA), Kanpur (UA), Allahabad (UA), Gorakhpur (UA), Varanasi (UA), Saharanpur, Noida, Firozabad, Jhansi (UA), Mathura-Vrindavan Municipal Corporation
  • West Bengal – Asansol (UA), Siliguri (UA), Durgapur (UA)

Classification of Z-Class Cities for HRA 2025

The earlier provided list includes cities classified under the X and Y categories for House Rent Allowance that applies to Central Government employees. Regarding the classification of Indian cities, those that are not part of the X and Y categories have been categorized as Z Class cities. These Z Class regions are distributed across various states and Union Territories, providing additional options for HRA calculations and advantages for government staff.

Major TPTA Cities Eligible for Transport Allowance

Classification of Indian Cities 2025: A comprehensive collection of cities and towns has been meticulously arranged into Higher TPTA cities to ascertain the Transport Allowance for Central Government personnel. In accordance with the recommendations of the 7th pay commission concerning Transport Allowance, 19 cities have been categorized under the A1 classification, which includes significant metropolitan regions such as Delhi, Mumbai, Kolkata, and Chennai, among others. These specific cities have been chosen due to their high living costs and transportation expenses, warranting special consideration for employees assigned to these urban areas.

Ahmedabad (UA), Bengaluru (UA), Chennai (UA), Coimbatore (UA), Delhi (UA), Ghaziabad (UA), Greater Mumbai (UA), Hyderabad (UA), Indore (UA), Jaipur (UA), Kanpur (UA), Kochi (UA), Kolkata (UA), Kozhikode (UA), Lucknow (UA), Nagpur (UA), Patna (UA), Pune (UA), Surat (UA). – Classification of Indian Cities

Additional Cities for Transportation Allowance

The cities mentioned previously are classified as Higher TPTA (Transport Allowance) locations according to the guidelines set forth by the 7th pay commission. This classification is vital for the computation of the transport allowance for Central Government personnel. Conversely, cities and towns that do not meet the criteria for Higher TPTA classification are categorized under the ‘Other Cities’ group. This organization is essential for establishing appropriate transport allowance rates for employees, taking into account the geographical context of their workplaces.

India’s Urban Landscape 2025: A Tier-Wise

The Reserve Bank of India (RBI) employs a classification system that categorizes various centers into six distinct tiers based on their population, reflecting the density of their inhabitants. This methodology offers insights into the demographic distribution of different regions.

In this classification, Tier-1 centers are identified as those with populations exceeding 100,000, marking them as significant urban hubs. As we move down the tiers, Tier-2 encompasses populations ranging from 50,000 to 99,999, signifying important urban locales. Tier-3 includes populations between 20,000 and 49,999, representing thriving semi-urban communities. Tier-4 comprises populations from 10,000 to 19,999, indicating smaller semi-urban areas. Tier-5 covers populations from 5,000 to 9,999, reflecting smaller localities. Finally, Tier-6 pertains to regions with fewer than 5,000 residents, showcasing the smallest settlements.

In addition to this tiered structure, areas are also classified according to their population categories. Rural centers are defined as having populations up to 9,999, representing remote and sparsely populated regions. Semi-urban centers include populations from 10,000 to 99,999, highlighting areas transitioning from rural to urban lifestyles. Urban centers are characterized by populations between 100,000 and 999,999, depicting vibrant urban environments. Lastly, Metropolitan centers consist of those with populations of 1,000,000 or more, indicating densely populated urban regions with dynamic economic and social activities.