Cabinet Decision on 7th CPC Transport Allowance

Cabinet Committee has decided to implement the recommendations of 7th CPC on Transport Allowance without any change.

In its official report, “For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA). Accordingly, fully DA-indexed allowances such as Transport Allowance were not given any raise. Allowances not indexed to DA were raised by a factor of 2.25 and the partially indexed ones by a factor of 1.5. The quantum of allowances paid as a percentage of pay was rationalised by a factor of 0.8.”

The existing rates are as under:

Employees Drawing	A-1/A Class cities	Others places (Rs. PM)
GP 5400 and above	3200+DA	1600+DA
GP 4200 to GP 4800 and other employees drawing GP<4200 but pay in the pay band to equivalent to Rs. 7440 and above	1600+DA	800+DA
GP<4200 and pay in the pay band below 7440	600+DA	300+DA

 7th CPC recommended as follows:

Pay Level	Higher TPTA Cities	Others places
9 and above	7200+DA	3600+DA
3 to 8	3600+DA	1800+DA
1 and 2	1300+DA	900+DA

   

Recommendations in respect of some important allowances paid to all employees:

(i)                  Rate of Children Education Allowance (CEA) has been increased from ₹1500 per month / child (max. 2) to ₹2250 per month / child (max.2). Hostel Subsidy will also go up from ₹4500 per month to ₹6750 per month.

(ii)                Existing rates of Special Allowance for Child Care for Women with Disabilities has been doubled from ₹1500 per month to ₹3000 per month.

(iii)          Higher Qualification Incentive for Civilians has been increased from ₹2000 - ₹10000 (Grant) to ₹10000 - ₹30000 (Grant).

7th CPC Allowances for Pensioners : Fixed Medical Allowances increased to Rs.1000 PM

Rate of Fixed Medical Allowance (FMA) for Pensioners has been increased from Rs.500 per month to Rs.1000 per month. This will benefit more than 5 lakh central government pensioners not availing CGHS facilities.

i.The rate of Constant Attendance Allowance granted on 100% disablement has been increased from Rs.4500 per month to Rs.6750 per month.