RBE No. 110/2008: Allowances – CCA/HRA – 6th CPC

No.E(P&A)II-2008/HRA-10, dated 12.09.2008

Sub: Decision of Government on the recommendations of the Sixth Central Pay Commission relating to grant of Compensatory (City) Allowance and House Rent Allowance to Railway employees.

1. Consequent upon the decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to Compensatory (City) Allowance (CCA) and House Rent Allowance (HRA), the President is pleased to decide that, in modification of Railway Board’s letter No.PC-65/HRA-1/3, dated 21.07.1965 as amended from time to time, letter No.PC-V/97/I/7/13, dated 16.10.1997 (RBE No. 140/1997) and letter No.E(P&A)II-2004/HRA-16, dated 28.01.2005 (RBE No. 13/2005), the admissibility of these allowances shall be as under:-

(i) Compensatory (City) Allowance:-

The Compensatory (City) Allowance stands ABOLISHED.

(ii)    House Rent Allowance:-

2.     Based on the recommendations of the Sixth Central Pay Commission, the earlier classification of cities for the purpose of grant of HRA has been revised viz. A-1 to ‘X’ and A, B-1 & B-2 to ‘Y’ and C & Unclassified to ‘Z’. In determining the revised classification, the population of urban Agglomeration area of the city has been taken into consideration. Accordingly, the rates of House Rent Allowance shall be as under:-

Classification of Cities/ Towns	Rate of House Rent Allowance as a percentage of (Basic Pay + NPA where applicable)
X	30%
Y	20%
Z	10%

3.     The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed pay band plus the applicable grade pay but does not include any other type of pay like special pay etc. In the case of railway servants in the pay scales of HAG+ and above, basic pay means the pay in the prescribed scale.

4.     In respect of those employees who opt to retain the pre-revised scales of pay, the pay for the purpose of these orders shall also include, in addition to the basic pay in the applicable pre-revised scales, Stagnation increment(s), Dearness pay and Non-Practicing Allowance as per orders in force on 01.01.2006.

5.     The list of cities/towns classified as “X”, “Y” and “Z” for the purpose of House Rent Allowance is enclosed as Annexure to these orders.

6.     The following orders have been issued by this Ministry in the past for grant of HRA/CCA at higher rates to the Railway employees posted within the municipal area:-

(i)    Letter No.E(P&A)II/74/HRA/35, dated 22.03.1975 (HRA/CCA at Delhi rates in Faridabad Complex).

(ii)    Letter No.E(P&A)II/79/HRA/4, dated 26.05.1979 (HRA/CCA at Delhi rates in Ghaziabad Municipal area).

(iii)   Letter No.E(P&A)II/89/HRA/41, dated 24.06.1991 (HRA/CCA at Delhi rates in Noida).

(iv)   Letter No.E(P&A)II/82/HRA/19, dated 24.09.1982 (HRA at Mumbai rates in Navi Mumbai).

(v)   Letter No.E(P&A)II/87/HRA/32, dated 23.12.1987 (HRA/CCA at Jalandhar rates in Jalandhar Cantonment).

(vi)   Letter No.E(P&A)II/85/JCM/NC/9/HRA/CCA, dated 05.02.1987 (RBE No. 20/1987) (HRA/CCA at Delhi rates in Gurgoan).

(vii)  Letter No.E(P&A)II/89/CCA/3, dated 08.02.1989 (RBE No. 37/1989) (CCA at B-2 class rates in Jamnagar).

(viii) Letter No.E(P&A)II/85/JCM/DC/7, dated 31.12.1986 (HRA at ‘C’ class rates in Mahe).

(ix)   Letter No.E(P&A)II/92/HRA/2, dated 15.05.1992 (HRA at ‘C’ class rates in Goa and UT of Daman and Diu).

(x)   Letter No.E(S)65/CPC/AL-7, dated 22.11.1965 (HRA at ‘C’ class rates in Coonoor)

(xi)   Letter No.PC3/74/JCM 5, dated 11.10.1979 and Letter No.E(P&A)II/81HRA/8, dated 01.06.1981 (CCA in cities mentioned in these orders on the basis of costliness).

(xii)  Para 4 of Letter No.E(P&A)II/90/HRA/CCA-18, dated 19.07.1993 (RBE No. 109/1993) (HRA at ‘A’, ‘B-1’ & ‘B-2’ Class rates in Shillong).

(xiii) Letter No.PC-III/77/NC/JCM6, dated 17.04.1979 (HRA at ‘C’ class rates in hill stations).

(xiv) Letter No.E(P&A)II/98/HRA/4, dated 18.02.1998 (HRA at B-2 class rates in Jammu).

(xv)  Letter No.E(P&A)II/97/HRA/19, dated 04.06.1998 (RBE No. 111/1998) (Classification of Kolkata and Chennai as ‘A-1’ class cities).

(xvi) Letter No.E(P&A)II/2004/HRA/4, dated 13.07.2004 (RBE No. 149/2004) (HRA at ‘B-1’ class rates in Goa & Port Blair and at C’ class rates in the rural areas of A&N and Lakshadweep Islands).

However due to (i)] inclusion of Navi Mumbai within the UA of Greater Mumbai as per 2001 census, (ii) placement of existing ‘C’ class cities/ towns as well as Unclassified place under new category ‘Z’, (iii) abolition of CCA, and (iv) up-gradation of Jammu, Kolkata & Chennai on account of inclusion of UA, the special dispensation shall continue to be extended only to the following cities:-

(i) Faridabad, Ghaziabad, NOIDA and Gurgaon at ‘X’ class city rates.

(ii)    Jalandar Cantt, Shillong, Goa & Port Blair at ‘Y’ class city rates.

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

8.     These orders shall be effective from September 1, 2008.

9.     This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

ANNEXURE

LIST OF CITIES/ TOWNS WHERE HOUSE RENT ALLOWANCE IS ADMISSIBLE TO RAILWAY EMPLOYEES.

S.No.	STATES	CITIES CLASSIFIED AS ‘X’	CITIES CLASSIFIED AS ‘Y’
1	Andhra Pradesh	Hyderabad (UA)	Vijayawada (UA), Warangal (UA), Visakhapatnam (UA), Guntur
2	Assam	–	Guwahati (UA)
3	Bihar	–	Patna (UA)
4	Chandigarh	–	Chandigarh
5	Chhatisgarh	–	Durg–Bhilai Nagar (UA), Raipur (UA)
6	Delhi	Delhi (UA)	–
7	Gujarat	–	Ahmedabad (UA), Rajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)
8	Haryana	–	Faridabad (*)
9	Jammu & Kashmir	–	Srinagar (UA), Jammu (UA)
10	Jharkand	–	Jamshedpur (UA), Dhanbad (UA), Ranchi (UA)
11	Karnataka	Bengaluru (UA)	Belgaum (UA), Hubli–Dharwad, Mangalore (UA), Mysore (UA)
12	Kerala	–	Kozhikode (UA), Kochi (UA), Thiruvananthapuram (UA)
13	Madhya Pradesh	–	Gwalior (UA), Indore (UA), Bhopal (UA), Jabalpur (UA)
14	Maharashtra	Greater Mumbai (UA)	Amaravati, Nagpur (UA), Aurangabad (UA), Nashik (UA), Bhiwandi (UA), Pune (UA), Solapur, Kolhapur (UA)
15	Orissa	–	Cuttack (UA), Bhubaneshwar (UA)
16	Punjab	–	Amritsar (UA), Jalandhar (UA), Ludhiana
17	Pondicherry	–	Pondicherry (UA)
18	Rajasthan	–	Bikaner, Jaipur, Jodhpur (UA), Kota (UA)
19	Tamil Nadu	Chennai (UA)	Salem (UA), Tiruppur (UA), Coimbatore (UA), Tiruchirappalli (UA), Madurai (UA)
20	Uttarakhand	–	Dehradun (UA)
21	Uttar Pradesh	–	Moradabad, Meerut (UA), Ghaziabad(*) Aligarh, Bareily (UA), Lucknow (UA), Kanpur (UA), Allahabad (UA), Gorakhpur, Varanasi (UA)
22	West Bengal	Kolkata (UA)	Asansol (UA)

*Only for the purpose of extending HRA on the basis of dependency.

NOTE: The remaining cities/ towns in various States/ UTs which are not covered by classification, as ‘X’ or ‘Y’ are classified as ‘Z’ for the purpose of HRA.

Download Railway Board Circular RBE No. 110/2008

Forward reference ⇒ RBE No. 54/2009, RBE No.71/2017,