7th Pay Commission Travelling Allowance on Transfer – Recommendations and decision by Govt

7th Pay Commission Travelling Allowance on Transfer – Committee’s proposal submitted to Government and decisions of approval

7th Pay Commission Travelling Allowance on Transfer – Details of recommendations and approvals

Govt has accepted the entire recommendations of 7th Pay Commission as far as TA on Transfer is conerned.  

Click here to check the decision of Govt on all 197 Allowances applicable to Central Government Employees, Railway Employees and Defence Personnel

The 7th CPC report on TA on Transfer reads as follows.
Mileage Allowance for Journeys by Road

8.15.35 It is more in the nature of entitlement for road journeys performed by different levels of employees. No demands have been received for any change.

Analysis and Recommendations

8.15.36 The Commission is of the view that present provisions are adequate. Hence, status quo may be maintained except at places where no specific rates have been prescribed. There the rates should be enhanced by 50 percent. Accordingly, the following is recommended:

8.15.37 At places where no specific rates have been prescribed, the rate per km will go up by 25 percent each time DA rises by 50 percent.

TA on Transfer

8.15.38 Presently it has four components: (a) Travel entitlement similar to Travelling Allowance, (b) Composite Transfer and Packing grant (CTG), (c) Reimbursement of charges on transportation of personal effects, and (d) Reimbursement of charges on transportation of conveyance.

8.15.39 Personnel posted in Island Territories have sought higher CTG on account of greater expenditure involved in transferring their household goods to and from the mainland.

8.15.40 Besides other demands for increase in entitlements, it has been brought to the notice of the Commission that when transfer is from a Class Z city to another Class Z city, the reimbursement for transportation of personal effects is granted at a lower rate compared to when the transfer is to a Class X or Class Y city. Uniformity has been sought in this regard.

Analysis and Recommendations

8.15.41 Each of the four components is discussed separately:

a.   Travel entitlement–This is discussed under the topic of “Travelling Allowance.”

b.   Composite Transfer and Packing Grant (CTG)–The Commission notes that CTG is payable to both serving as well as retiring employees upon their transfer at a similar rate of one month’s Basic Pay last drawn. In line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, it is recommended that CTG should be paid at the rate of 80 percent of last month’s Basic Pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay. Presently NPA and MSP are included as a part of Basic Pay while determining entitlement for grant of CTG. The Commission finds no justification for doing so, as the expenditure and inconvenience involved in relocation on transfer/retirement is similar for all employees. Hence, no other add-ons should be allowed in Basic Pay while calculating CTG.

c.   Reimbursement  of  charges  on  transportation  of  personal  effects–The  following provisions are recommended:

The rates will further increase by 25 percent each time DA rises by 50 percent.

The Commission notes that rates for transportation by road are already on a per km basis, and finds no merit in differentiating between classes of cities for this purpose. Hence, considerations of class of city have been done away with.

d.   Reimbursement of charges on transportation of conveyance–The present provisions to this effect are adequate. Accordingly, the following is recommended:

TA for Retiring Employees

8.15.42 As the name suggests, this allowance is granted to employees upon retirement. Presently it consists of (a) reimbursement of expenditure involved in transportation of conveyance, and (b) a Composite Transfer Grant (CTG) equal to last month’s Basic Pay drawn.

Analysis and Recommendations

8.15.43 The individual components of TA for retiring employees will be similar to TA on Transfer, as outlined above.

 
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