The Central government has decided to upgrade certain cities from Z class (10% HRA) to Y class (20%) and two cities from Y class to X class (30% HRA)  for payment of HRA to Central Government employees. A few cities have been upgraded for increase in Transport Allowance ( cities with more than 20 lakh population). These up-gradations are based on the 2011 census.

This order will not be directly applicable to PSUs. The issue will have to be taken up with DPE for getting implemented to the PSU employees including BSNL employees. While the criteria is population only for the PSU employees, in the case of CG employees, there some other considerations also like Urban Agglomeration.