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Classification of Indian Cities 2024: Tier-1, 2 & 3 Guide

X, Y, and Z Classification of Indian Cities PDF 2024

Tier-1, Tier-2, and Tier-3 Classification of Indian Cities 2024: The Indian Government has introduced a classification framework for cities and towns, splitting them into three groups for House Rent Allowance and two for Transport Allowance available to Central Government employees. These groups are typically known as Tier-I, Tier-II, and Tier-III cities in India.

This classification is primarily based on population size. For House Rent Allowance, urban areas are divided into X Class, Y Class, and Z Class cities. When it comes to Transport Allowance, these same cities are categorized as either Higher TPTA cities or Other Places. This classification system plays a vital role in determining the allowances allocated to government employees based on their location of service.

Classification of Cities and Towns in India 2024

TopicClassification of Indian Cities
BeneficiariesCentral Government Employees
HRA CitiesX-Class, Y-Class, Z-Class
TA CitiesHigher TPTA Cities & Other Places
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List of HRA X-Class Cities in India 2024

State NameX – Class City Classficiation
Andhra PradeshHyderabad (UA)
DelhiDelhi (UA)
GujaratAhmedabad (UA)
KarnatakaBengaluru (UA)
MaharashtraGreater Mumbai (UA), Pune (UA)
Tamil NaduChennai (UA)
West BengalKolkata(UA)

List of HRA Y-Class Cities in India 2024

State NameY – Class City Classficiation
Andhra PradeshVijawada (UA), Warangal (UA), Visakhapatnam (UA), Guntur, Nellore (UA)
AssamGuwahati (UA)
BiharPatna (UA)
ChandigarhChandigarh (UA), S.A.S Nagar, Mohali
ChhattisgarhDurg-Bhilai Nagar (UA),  Raipur (UA)
Delhi
GujaratRajkot (UA), Jamnagar (UA), Bhavnagar (UA), Vadodara (UA), Surat (UA)
HaryanaFaridabad, Gurgaon (UA)
Jammu & KashmirSrinagar (UA), Jammu (UA)
JharkhandJamshedpur (UA),  Dhanbad (UA),  Ranchi (UA), Bokaro Steel City
KarnatakaBelgaum (UA), Hubli-Dharwad, Mangalore (UA), Mysore (UA), Gulbarga (UA)
KeralaKozhikode (UA), Kochi (UA), Thiruvanthapuram (UA), Thrissur (UA), Malappuram (UA), Kannur (UA), Kollam (UA)
Madhya PradeshGwalior (UA), Indore (UA), Bhopal (UA), Jabalpur (UA), Ujjain
MaharashtraAmravati, Nagpur (UA), Aurangabad (UA), Nashik (UA), Bhiwandi (UA), Solapur, Kolhapur (UA), Vasai-Virar City, Malegaon (UA), Nanded-Waghala, Sangli (UA)
OrissaCuttack (UA), Bhubaneswar (UA), Raurkela (UA)
PondicherryPondicherry (UA)
PunjabAmritsar (UA), Jalandhar (UA), Ludhiana
RajasthanBikaner, Jaipur, Jodhpur (UA), Kota (UA), Ajmer (UA)
Tamil NaduSalem (UA), Tirupur (UA), Coimbatore (UA), Tiruchirappalli (UA), Madurai (UA), Erode (UA)
UttarakhandDehradun (UA)
Uttar PradeshMoradabad, 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 BengalAsansol (UA), Siliguri (UA), Durgapur (UA)

List of HRA Z-Class Cities in India 2024

The list mentioned earlier comprises cities that fall under the X and Y categories for House Rent Allowance designated for Central Government employees. As for the classification of Indian cities, those that do not fit into the X and Y categories are now designated as Z Class cities. These Z Class areas are distributed across multiple states and Union Territories, providing further alternatives for calculating HRA and allowances for government personnel.

List of Higher TPTA Cities for Transport Allowance

Classification of Indian Cities 2024: A detailed compilation of cities and towns has been carefully organized into the Higher TPTA category to determine the Transport Allowance for Central Government staff. Following the recommendations from the 7th pay commission regarding this allowance, 19 cities have been classified under the A1 category, which features major metropolitan areas such as Delhi, Mumbai, Kolkata, and Chennai, among others. These cities were selected due to their elevated living costs and transportation expenditures, justifying additional support for employees stationed in these bustling urban environments.

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

List of Other Cities for Transport Allowance

Classification of Indian Cities 2024 PDF: The cities listed earlier are recognized as Higher TPTA (Transport Allowance) cities, as per the directives set by the 7th pay commission. This designation is crucial for assessing the transport allowance for Central Government staff. In contrast, cities and towns that do not qualify as Higher TPTA are categorized as ‘Other Cities.’ This systematization aids in determining suitable transport allowance rates for employees depending on where they work.

Tier-1, Tier-II, Tier-III and Tier-IV Classification of Indian Cities 2024

The Reserve Bank of India (RBI) utilizes a classification system based on population to sort various centres into six distinct tiers, reflecting their density. This approach provides insight into the demographic layout of different regions.

In this system, Tier-1 centres are those with populations exceeding 100,000, highlighting significant urban centers. Tier-2 includes areas housing between 50,000 and 99,999 residents, representing important urban locales. Next, Tier-3 covers populations from 20,000 to 49,999, showcasing vibrant semi-urban settings. Tier-4 is made up of communities with populations ranging from 10,000 to 19,999, indicative of smaller semi-urban areas. Tier-5 pertains to populations between 5,000 and 9,999, reflecting smaller towns. Finally, Tier-6 includes regions with fewer than 5,000 inhabitants, representing the smallest communities.

Beyond these tiers, centres are also categorized based on their population groups. Rural centres consist of populations up to 9,999, signifying remote and sparsely populated areas. Semi-urban centres range from 10,000 to 99,999 residents, marking the shift from rural to urban lifestyles. Urban centres are those with populations between 100,000 and 999,999, depicting lively urban landscapes. Lastly, Metropolitan centres are defined by populations of 1,000,000 or more, illustrating densely populated urban regions characterized by bustling economic and social activities.