Administrative units are classified based on four criteria: population size, natural area, socio-economic development conditions, and specific characteristics. The classification is determined using a 100-point scoring system.

Under the regulations, an administrative unit is classified as Tier 1 if it scores 75 points or higher, except for wards and special zones that may receive special classification. Units scoring from 60 to under 75 points are classified as Tier 2, while those scoring below 60 points are classified as Tier 3.

The classification of administrative units serves as an important basis for formulating socio-economic development policies, organising local government structures, and developing appropriate regimes and policies for local officials and civil servants in accordance with each administrative category.