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HRA city classification and rates
| Class | Population | HRA now | Minimum HRA |
|---|---|---|---|
| X | 50 lakh and above | 30% | ₹5,400 |
| Y | 5 lakh to 50 lakh | 20% | ₹3,600 |
| Z | Below 5 lakh | 10% | ₹1,800 |
The rates were 24%, 16% and 8% when the 7th CPC began, rose to 27%, 18% and 9% when DA crossed 25% (July 2021) and to 30%, 20% and 10% when DA crossed 50% (January 2024). HRA is a percentage of basic pay only, not DA.
X class cities
Delhi (including the urban agglomeration), Greater Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad and Pune.
Y class cities
Agra, Ajmer, Aligarh, Allahabad (Prayagraj), Amravati, Amritsar, Asansol, Aurangabad, Bareilly, Belgaum, Bhavnagar, Bhiwandi, Bhopal, Bhubaneswar, Bikaner, Bokaro, Chandigarh, Coimbatore, Cuttack, Dehradun, Dhanbad, Durg-Bhilai, Durgapur, Erode, Faridabad, Firozabad, Ghaziabad, Gorakhpur, Gulbarga, Guntur, Gurugram, Guwahati, Gwalior, Hubli-Dharwad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamnagar, Jamshedpur, Jhansi, Jodhpur, Kakinada, Kannur, Kanpur, Kochi, Kolhapur, Kollam, Kota, Kottayam, Kozhikode, Kurnool, Lucknow, Ludhiana, Madurai, Malappuram, Mangalore, Mathura, Meerut, Moradabad, Mysore, Nagpur, Nanded, Nashik, Nellore, Noida, Palakkad, Patna, Puducherry, Raipur, Rajahmundry, Rajkot, Ranchi, Rourkela, Salem, Sangli, Siliguri, Solapur, Srinagar, Surat, Thiruvananthapuram, Thrissur, Tiruchirappalli, Tirunelveli, Tiruppur, Ujjain, Vadodara, Varanasi, Vasai-Virar, Vellore, Vijayapura, Vijayawada, Visakhapatnam, Warangal.
The main Y class cities as classified on the 2011 Census. Urban agglomerations around a city take its class. Check your office's classification in the Department of Expenditure order.
Z class
Every other place in India.
Transport Allowance cities
The higher Transport Allowance (₹7,200 / ₹3,600 / ₹1,350) applies in 19 cities: Ahmedabad, Bengaluru, Chennai, Coimbatore, Delhi, Ghaziabad, Greater Mumbai, Hyderabad, Indore, Jaipur, Kanpur, Kochi, Kolkata, Kozhikode, Lucknow, Nagpur, Patna, Pune and Surat. Everywhere else the lower rates apply.
Work out your HRA in the salary calculator. For the income tax exemption on HRA, see the HRA exemption calculator.