Various types of allowances admissible to the central government employees and the conditions for the drawal of the compensatory allowances.

Various types of allowances admissible to the central government employees and the conditions for the drawal of the compensatory allowances.


1. Special compensatory (Hill Areas) Allowances

This allowance is admissible throughout the year to the central government employees posted at hill stations situated at a height of 1000 meters or more above sea-level. Bad climate allowance is granted at those places which are declared as bad climate areas by the state government for the grant of the allowances to their staff.


The monthly rate of the allowances are given below:


If Grade pay Rs 5400 and above and HAG + and above then Bad climate allowance: 400, Composite HCA rs. 600.


If Grade pay less than 5400 then Bad climate allowance: 240, Composite HCA Rs. 480.


2. Special compensatory (Remote Locality ) Allowance

This allowance is granted to central government employees serving in specified remote localities of the country.

This allowance amount varies from Rs 400 to 2600 for grade pay of Rs 5400 and above and amount varies from 320 to 2000 for grade pay below 5400.


This allowance is granted to central government employees serving in specified remote localities of the country.


3. Special (Duty) Allowance

1. Admissibility: To central government civilian employees on posting to any station in the North eastern region irrespective of whether the transfer is from outside the Region or from another area of the region. Also admissible to officers posted to N-E council when they are stationed in N-E region.

Rate admissible: 12.5 % of Basic Pay + NP.


4. Island special (Duty) allowance.

Admissibility: central government employees on their posting to the Andaman and Nicobar islands or Lakshadweep. Rates admissibile: Areas around capital towns: 12.5 % of BP + NPA

Difficult areas: 20% of BP + NPA

More difficult areas: 25% of BP + NPA


5. Project Allowance:

This is granted to compensate the employees for lack of amenities such as schools, markets, housing and dispensaries at the places of construction of major projects. For Grade pay of 5400 and above Rs. 1500 per month. For grade pay less than Rs 5400 ,Rs 1000 per month.


6. Tribal Area Allowances.

This allowance is granted in a few places. Tribal Taluks/ pockets in our country. The rate is same as Bad climate allowance.


7. Hard Area Allowance.

Central government employees posted in Nicobar group of Islands and Mincoy in Lakshadweep Islands are entitled to this allowance @ the rate of 25% of Basic Pay + NPA.

8. Bad Climate Allowance

This allowance is admissible to the government servants serving in Bad Climate Area/ Unhealthy locality announced by the Government from time to time. For grade pay of Rs 5400 and above Rs 400 and below Rs.5400 , Rs. 240 .

Reference: Swami's Hand Book 2010