Nellore town in AP along with 20 other towns in the country is upgraded as "Y class city and the Central Govt employess working in Nellore will get 20% HRA with effect from 01.04.2014.
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance, Department of Expenditure for reclassification/up-gradation of certain cities/towns on the basis of Census-2011, for the purpose of grant of House Rent Allowance (HRA) and Transport Allowance to Central Government employees.
The existing qualifying limits of population for classification for HRA purpose is 50 lakhs & above for 'X', 5 - 50 lakhs for 'Y' and below 5 lakhs for 'Z' class city. Transport allowance is payable at 'higher rates' in 13 specified cities classified earlier as 'A-1' / 'A' (that is those cities having population of 20 lakhs & above) and at 'lower rates' in all other places.
Source : PIB
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