With the Dearness Allowance (DA) officially crossing the 50% mark earlier this year, the House Rent Allowance (HRA) for all Central Government employees has been automatically revised to the highest bracket: 30%, 20%, and 10%.
However, the confusion often lies in the City Classification. “Is my city X, Y, or Z?” This classification determines whether you get 30% of your basic pay as rent allowance or just 10%.
In this article, we provide the updated HRA City Classification List 2026, the population criteria for each category, and the revised calculation rates.
The Revised HRA Rates (Post-50% DA)
As per the 7th Pay Commission recommendations, HRA rates are dynamic. Since DA has crossed 50%, the current effective rates are:
| City Category | Old Rate (DA < 25%) | Mid Rate (DA 25-50%) | Current Rate 2025 (DA > 50%) |
| X Class (Metro) | 24% | 27% | 30% |
| Y Class (Tier-2) | 16% | 18% | 20% |
| Z Class (Tier-3) | 8% | 9% | 10% |
Note: The minimum HRA floor rates are also fixed at ₹5,400 (X), ₹3,600 (Y), and ₹1,800 (Z).
List of “X” Class Cities (HRA = 30%)
There are currently only 8 cities in India classified as “X” (formerly A-1). Employees posted here receive the maximum HRA.
- Bengaluru (Karnataka)
- Chennai (Tamil Nadu)
- Delhi (NCT)
- Hyderabad (Telangana)
- Kolkata (West Bengal)
- Mumbai (Maharashtra)
- Pune (Maharashtra)
- Ahmedabad (Gujarat)
List of “Y” Class Cities (HRA = 20%)
Cities with a population between 5 Lakhs and 50 Lakhs fall under “Y” Class. Here is the state-wise list of major Y cities:
- Andhra Pradesh: Vijayawada, Visakhapatnam, Guntur, Nellore.
- Assam: Guwahati.
- Bihar: Patna.
- Chandigarh: Chandigarh.
- Chhattisgarh: Raipur, Durg-Bhilai.
- Gujarat: Rajkot, Jamnagar, Bhavnagar, Vadodara, Surat.
- Haryana: Faridabad, Gurgaon (Gurugram).
- J&K: Srinagar, Jammu.
- Jharkhand: Ranchi, Jamshedpur, Dhanbad.
- Karnataka: Mysore, Mangalore, Hubli-Dharwad, Belgaum.
- Kerala: Kochi, Thiruvananthapuram, Kozhikode, Kannur, Kollam, Thrissur.
- Madhya Pradesh: Indore, Bhopal, Jabalpur, Gwalior, Ujjain.
- Maharashtra: Nagpur, Nashik, Aurangabad, Solapur, Amravati, Bhiwandi, Nanded.
- Odisha: Bhubaneswar, Cuttack.
- Punjab: Ludhiana, Amritsar, Jalandhar.
- Rajasthan: Jaipur, Jodhpur, Kota, Bikaner, Ajmer.
- Tamil Nadu: Coimbatore, Madurai, Salem, Tiruchirappalli, Tiruppur, Erode.
- Uttar Pradesh: Lucknow, Kanpur, Varanasi, Agra, Meerut, Prayagraj (Allahabad), Ghaziabad, Noida, Bareilly, Aligarh, Moradabad, Saharanpur, Gorakhpur, Jhansi.
- Uttarakhand: Dehradun.
- West Bengal: Asansol, Siliguri, Durgapur.
List of “Z” Class Cities (HRA = 10%)
Any city or town NOT listed in the X or Y categories above is automatically classified as a “Z” Class city.
- HRA Rate: 10% of Basic Pay.
- This covers most rural areas, small towns, and district headquarters with populations below 5 Lakhs.
How to Calculate Your HRA (Example)
Let’s assume your Basic Pay is ₹44,900 (Level 7).
- If posted in Delhi (X): ₹44,900 × 30% = ₹13,470
- If posted in Jaipur (Y): ₹44,900 × 20% = ₹8,980
- If posted in a Village (Z): ₹44,900 × 10% = ₹4,490
Conclusion
The HRA City Classification 2026 remains based on the 2011 Census population data until the new Census is conducted. Ensure you are claiming the revised 30/20/10 rates in your salary slip. If you live in a Z city but within 8km of a Y city’s municipal limits, don’t forget to check if you are eligible for the higher rate!