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Dearness Allowance (DA)

Purpose: Compensates for price increases above a specified index level.

Calculation: Determined based on the 12-month average price index, with uniform 100% neutralization.

Rates:

·      12% (2019)

·      17% (2019-2021)

·      31% (July 2021)

·      34% (January 2022)

·      38% (July 2022)

·      42% (January 2023)

·      46% (July 2023)

·      50% (January 2024)

·      53% (July 2024)

Regulation:

·      Paid during leave (except extraordinary leave abroad).

·      Paid during joining time, suspension (on subsistence allowance), and foreign deputation for six months.

·      Pensioners receive DA based on their pay and pension structure.

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 House Rent Allowance (HRA)

House Rent Allowance (HRA) is a financial benefit provided to government employees to help them cover rental expenses when they do not reside in government-provided accommodation. The HRA amount is calculated as a percentage of the Basic Pay and varies based on the location of posting.

 

1. Classification of Cities & HRA Rates

HRA rates depend on the classification of cities based on population size. The classification is as follows: 

Classification	Population size	HRA Rate
‘X’ Cities (Metropolitan)	50 Lakhs and above	30%
‘Y’ Cities (Large Urban areas)	5 lakhs – 50 lakhs	20%
‘Z’ Cities (Small Town/ Rural Areas)	Less than 5 lakhs	10%

HRA is subject to a minimum threshold:

·      ‘X’ Cities: ₹5,400 per month

·      ‘Y’ Cities: ₹3,600 per month

·      ‘Z’ Cities: ₹1,800 per month

Further revisions:

 

·      When Dearness Allowance (DA) crosses 25%, HRA increases to 27%, 18%, and 9% for ‘X’, ‘Y’, and ‘Z’ cities, respectively.

·      When DA crosses 50%, HRA will further increase to 30%, 20%, and 10%, respectively.

 

2. General Rules for HRA

HRA is based on the location of the duty station, not the place of residence.

 

Ø Example: If an employee is posted in Delhi but lives in Noida, HRA will be calculated based on Delhi rates.

Ø HRA is not included in salary if government accommodation is occupied.

 

Ø For re-employed pensioners, the non-ignorable portion of their pension is added to actual pay for HRA calculation.

 

Ø HRA is given without requiring rent receipts (since 23rd September 1986), but certain cases may require certification.

 

Ø No Accommodation Certificate Requirement Removed (since 5th March 2019):

 

Ø Employees are not required to furnish a "No Accommodation Certificate" from government housing authorities to claim HRA.

3. HRA Entitlement During Special Circumstances

3.1 HRA During Leave

Ø HRA is admissible during all types of leave (including Child Care Leave, Study Leave, and Extraordinary Leave) for the first 180 days.

Ø Beyond 180 days, HRA can be claimed only with a valid certificate.

3.2 HRA During Suspension

Ø HRA is payable for the first 180 days of suspension.

Ø Beyond this period, it is only paid upon submission of required certificates.

3.3 HRA During Study Leave

Ø Full HRA is payable at the place of study without requiring additional certification.

3.4 HRA During Joining Time & Transfer

Ø HRA is paid at the rate applicable at the old duty station during joining time.

Ø If an employee retains government accommodation at the old station (paying rent), HRA at the new station is admissible only for 8 months.

 

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4. HRA for Employees on Deputation & Training

4.1 During Domestic Training

Ø If no Dearness Allowance (DA) is drawn → HRA is payable at the higher rate (headquarters or training location).

Ø If DA is drawn → HRA is restricted to headquarters rates.

4.2 During Foreign Training

Ø HRA is admissible at the headquarters rate, provided the family resides in India and a certificate is furnished.

4.3 During Deputation Abroad

Ø If the employee’s family remains in India, HRA is paid at the headquarters rate.

Ø Not admissible if the entire family moves abroad.

 

5. HRA for Employees Staying in Special Accommodations

5.1 Government Hostel Residents

Ø Employees staying in government-run hostels (e.g., working women’s hostels) are not eligible for HRA.

5.2 Rent-Free Accommodation Cases

Ø Employees sharing rent-free government accommodation are not eligible for HRA.

Ø If an employee resides in accommodation allotted to a relative (parents, spouse, etc.) by a government or PSU, HRA is not admissible.

5.3 Employees Owning Houses

Ø Employees who own houses but reside in rented accommodation are eligible for HRA, provided they furnish a self-declaration.

 

6. HRA for Married Couples (Both Government Employees)

Ø If both husband and wife are government employees and live in rented/owned accommodation, each can claim HRA independently.

Ø If one spouse is allotted government accommodation, the other is not eligible for HRA, even if they live separately.

 

7. HRA in Special Locations (Northeast, Islands, etc.)

Ø Double HRA is provided to employees posted in:

·      North Eastern Region

·      Andaman & Nicobar Islands

·      Lakshadweep Islands

·      Some parts of Jammu & Kashmir

Ø HRA in Lieu of Rent-Free Accommodation

·      If government accommodation is surrendered, HRA is payable from the surrender date.

 

8. HRA for Employees Residing in Government Guest Houses & State Bhavans

·      Rent reimbursement instead of HRA is allowed for a maximum of 6 months if employees stay in:

·      State Bhavans / Guest Houses

·      Departmental Guest Houses run by Central/State Governments or Autonomous Organizations

·      HRA is not paid during this period.

 

9. List of Cities Classified as ‘X’ and ‘Y’ for HRA

Ø ‘X’ Cities (50 lakh+ population) – 30% HRA

·      Delhi (UA), Mumbai (UA), Kolkata (UA), Chennai (UA), Bengaluru (UA), Hyderabad (UA), Pune (UA), Ahmedabad (UA)

Ø ‘Y’ Cities (5 lakh to 50 lakh population) – 20% HRA

·      Patna (UA), Lucknow (UA), Jaipur (UA), Bhopal (UA), Nagpur (UA), Chandigarh (UA), Coimbatore (UA), Indore (UA), Visakhapatnam (UA), Guwahati (UA)

(All remaining towns and cities fall under ‘Z’ category – 10% HRA)

 

Conclusion

HRA is an essential component of a government employee’s salary, structured to ensure fair compensation for housing costs. Its calculation is primarily based on city classification, employee pay level, and applicable conditions like leave, deputation, and accommodation status.

 

Transport Allowance (TPTA)

1.TPTA Rates

TPTA rates vary based on the employee's pay level and place of posting.

Pay level in Pay Matrix	Higher TPTA Cities (Rs./Month)	Other Places (Rs./Month)
Level 9 and above	7200 + DA	3600 +DA
Level 3 to 8	3600 + DA	1800 + DA
Level 1 and 2	1350 + DA	900 + DA

 

Ø Higher TPTA Cities: Major metropolitan cities where commuting costs are higher.

Ø Other Places: All other locations where commuting costs are relatively lower.

Transport Allowance is subject to increase with DA increments.

2. Higher Transport Allowance (TPTA) Cities

Employees posted in the following higher transport allowance (TPTA) cities receive a higher rate of Transport Allowance:

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)

(UA = Urban Agglomeration as per Census classification)

 

NOTE: Employees posted in Faridabad, Gurgaon, Ghaziabad, and Noida receive TPTA at "Other Places" rates instead of Higher TPTA Cities rates.

3. Special Provisions for Transport Allowance

Ø Special Benefits for Employees in Pay Levels 1 & 2

·      Employees drawing a basic pay of ₹24,200 and above in Pay Levels 1 & 2 are eligible for ₹3,600 + DA in Higher TPTA cities and ₹1,800 + DA in Other Places.

4. Conditions & Regulations for Transport Allowance

 

4.1 When Transport Allowance is NOT Admissible

·      Transport Allowance is not paid in the following situations:

·      If a government vehicle or official transport facility is provided.

·      During a full calendar month of absence due to:

·      Leave (including medical leave, study leave, or extraordinary leave).

·      Training (if free transport or daily allowance is provided).

·      Official tour covering a full calendar month.

·      Suspension for a complete calendar month.

·      For employees who were exempted from office attendance during a lockdown (e.g., work-from-home period).

·      To employees provided official transport during non-availability of public transport.

 

4.2 When Transport Allowance is Admissible

TPTA is payable in full if:

 

·      The employee is on training (treated as duty) and does not receive transport facilities.

·      The employee is on tour for part of a month (TPTA is not deducted for that month).

·      The employee is suspended but reinstated later, and the suspension is treated as duty.

 

5. Transport Allowance for Specific Employee Categories

 

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5.1 Transport Allowance for Handicapped Employees

Employees with benchmark disabilities (as per the RPwD Act, 2016) receive Transport Allowance at DOUBLE the normal rates.

Ø Categories of disabilities eligible for double Transport Allowance:

·      Blindness

·      Locomotor disability (Cerebral Palsy, Leprosy Cured, Muscular Dystrophy, etc.)

·      Deaf & Dumb / Hearing Impairment

·      Autism Spectrum Disorder, Intellectual Disability

·      Chronic Neurological Conditions (Multiple Sclerosis, Parkinson’s Disease)

·      Blood Disorders (Haemophilia, Thalassemia, Sickle Cell Disease)

·      Multiple Disabilities

Note: Employees must provide a valid Disability Certificate to claim double Transport Allowance.

 

5.2 Transport Allowance for Vacation Staff

Ø Vacation staff (such as school teachers) are eligible for Transport Allowance if no free transport facility is provided.

Ø However, if they are on leave covering an entire calendar month, TPTA is not paid.

 

5.3 Transport Allowance for Officers Availing Staff Car

·      Officers in Pay Level 14 and above entitled to a staff car may choose between using the official vehicle or drawing ₹15,750 + DA as Transport Allowance.

·      Once they opt for Transport Allowance, they cannot switch back to using a staff car.

 

6. Transport Allowance for Employees on Field Duty

Certain employees, such as inspectors or surveyors, often work in the field. Their Transport Allowance is regulated as follows:

·      If an employee receives free transportation for field/inspection/survey duty, they are NOT eligible for Transport Allowance.

·      If no official transport is provided, they receive full Transport Allowance.

·      During tour duty exceeding a calendar month, Transport Allowance is NOT paid for that month.

 

7. Transport Allowance for Employees During Transfers, Deputation & Foreign Assignments

 

·      During Deputation Abroad: Employees on foreign deputation do not receive Transport Allowance during their posting.

·      During Temporary Transfers: If an employee is temporarily transferred for up to 90 days, Transport Allowance is paid as per the old station’s rate. Beyond 90 days, Transport Allowance is paid as per the new station’s rate.

 

8. Transport Allowance for Employees During Lockdowns & Work-from-Home (COVID-19 Guidelines)

During the COVID-19 pandemic, special rules were applied:

·      Employees who did not attend office for an entire calendar month due to lockdown or work-from-home were NOT eligible for Transport Allowance.

·      Employees who attended office partially during the month were eligible for full TPTA.

·      Non-entitled employees who were temporarily provided an official vehicle during lockdown were NOT eligible for TPTA.

(As per OM dated 1st December 2020.)

 

9. Conclusion

Transport Allowance is an essential component of a government employee’s salary, aimed at reducing commuting costs. Its eligibility depends on factors like pay level, location, attendance, availability of official transport, disability status, and field duty assignments.

 

Special Allowances

Special Allowance for Child Care (Women with Disabilities)                                                                                                

·      ₹3,000 per month for up to 2 children (until the child is 2 years old).

·      Increases by 25% when DA rises by 50%.

 Cycle Allowance

·      ₹180 per month for employees required to maintain and use a bicycle for official duties.

 Dress Allowance

·      ₹5,000 per year for employees required to wear uniforms.

·      Increases by 25% when DA rises by 50%.

Overtime Allowance (OTA)

·      Payable to non-gazetted operational staff performing extra duties beyond office hours.

·      Requires written approval.

·      Linked to biometric attendance.

·      Maximum limit: One-third of monthly working hours.

 

Fee & Honorarium

Fee

·      Definition: Remuneration from sources other than the Consolidated Fund.

·      Permission Required: Prior approval necessary.

·      Government Share: 1/3rd of any fee exceeding ₹5,000 per financial year.

Exceptions:

·      Income from books, research, sports, or patents (if approved).

·      Scholarships and stipends.

 

Honorarium

Definition: Payment for special work from the Consolidated Fund.

Conditions:

·      Not for temporary work increases or overlapping duties.

·      Cannot be claimed if OTA is paid.

Rates for Specific Cases:

·      MTS working as Drivers: ₹20/day (four-wheelers), ₹10/day (two/three-wheelers).

·      Translators: ₹120-130 per thousand words.

·      Inquiry & Presenting Officers: 10-15% of monthly basic pay.

·      Retired Inquiry Officers: 60-90% of pension per case + ₹40,000 for transport + other allowances.

 

Non-Practising Allowance (NPA)

·      For Medical Professionals: 20% of Basic Pay.

·      Condition: Total pay (Basic + NPA) should not exceed ₹2,37,500.

 

Conveyance & Travel Allowances

Local Conveyance

·      Eligibility: Officials required to travel locally for work.

Reimbursement:

·      Actual conveyance fare (taxi/scooter/bus).

·      ₹300/month maximum limit.

 

Conveyance Allowance

For Extensive Traveling Officials:

·      ₹1,680 – ₹4,500 (own car).

·      ₹556 – ₹1,276 (other conveyance).

·      Reviewed every two years.

 

Conveyance Allowance for Medical Officers

·      For Visiting Hospitals & Patients: ₹7,150 (car), ₹2,350 (bike), ₹1,950 (no vehicle).

·      Requires a logbook of visits.

 

Extra Work Allowance

·      Replaces: Caretaking Allowance, Flag Station Allowance, Library Allowance, etc.

·      Rate: 2% of Basic Pay.

·      Limit: Payable for 1 year, with a 1-year gap before reappointment.

 

Miscellaneous Allowances

Split Duty Allowance

·      ₹450 per month for sweepers and farashes working in split shifts.

Cash Handling Allowance

·      ₹700–₹1,000 per month, based on cash disbursed.

Night Duty Allowance (NDA)

Purpose: Given to employees working between 10:00 PM and 6:00 AM.

 Rate of Allowance:

·      Formula: (Basic Pay + DA) ÷ 200 × Hours of Night Duty.

·      Basic Pay cap for NDA eligibility: ₹43,600 per month.

Special Conditions

·      Employees already compensated for night work through other allowances do not receive NDA.

 

Tough Location Allowance

Purpose: Replaces previous special compensatory allowances for employees posted in hardship locations.

Eligibility: Employees in areas with difficult living conditions (e.g., Northeast, Andaman & Nicobar, Ladakh, Jammu & Kashmir).

Rate of Allowance: Based on area difficulty level (Low, Medium, High).

 

Special Compensatory Allowances (For Remote Areas)

 

Employees posted in difficult areas (e.g., border locations) receive additional special allowances.

 

Island Special Duty Allowance

·      Given to employees in Andaman & Nicobar and Lakshadweep Islands.

·      Compensates for high cost of living and remoteness.

Special (Duty) Allowance for Northeast Employees

·      Given to employees posted in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim.

·      Compensates for difficult terrain and security concerns.

Conclusion

Special allowances play a crucial role in compensating government employees for additional responsibilities, tough locations, and extra work. These allowances vary based on factors like job nature, location, disability status, and work hours.