Allowances paid to Central Government Employees

HRA, Transport Allowance, and Dearness Allowance are payable to Central Government Employees

Various Allowances for Centeral Government Employees which are granted based on nature of work, place of posting, hirarchy of post / cadre are governed by Office Memorandums issued by Government from time time. After 7th Pay Commission reviewed all the allowances payable to Central Government Employees including Railway Employees, Civilian Defence Employees and Defence Personnel and gave its recommendations in the year 2016.

While Government implemented the recommendations of 7th Pay Commission with regard to Pay with effect from 1st January 2016, a committee was constituted by Govt as far as Allowances are concerned to study the recommendations of 7th Pay Commission. As per the report of Committee on allowances submitted to Govt in April 2017, certain allowances were revised while others were either abolished or subsumed with the prevailing allowances. Prominent Allowances / Incentives which are applicable to Central Government Employees are as follows.

  1. Dearness Allowance
  2. House Rent Allowance
  3. Transport Allowance
  4. Children Education Allowance
  5. Travelling Allowance while on Tour
  6. Deputation Allowance (Applicable to officers who are deputed to other departments)
  7. Fixed Medical Allowance for Pensioners.
  8. Higher Qualification Allowance
  9. Leave Travel Concession
  10. Leave encashment (while on duty and at the time of retirement)
  11. Non-Practicing Allowance

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