7th CPC Transport Allowance
Finmin Issued Orders on 7.7.2017
Implementation of the recommendations of the 7th Central Pay Commission relating to grant of Transport Allowance to Central Government employees.
This orders shall be effective from 1st July, 2017
These orders will apply to all Civilian Employees of the Central Government. The orders will also apply to the Civilian Employees paid from the Defence Service Estimates. In respect of the Armed Forces Personnel and Railway Employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
Updated on 3.8.2017
Finance Ministry issued an important amendment order regarding Transport Allowance on 2.8.2017 – Click to View the Order
Department of Expenditure issued an important amendment order regarding Tranport Allowance on 2nd August, 2017. Central Government employees who are drawing pay of 24200 & above in Pay Level 1 & 2 of the Pay Matrix, shall be eligible for grant of Transport Allowance 3600 for TPTA Cities and 1800 for all Other Places. The Central Government employees those who were in Grade Pay 1800 and 1900 and their pay in the pay band equivalent to 7440 and above eligible for higher Transport Allowance.
7th CPC Allowances Gazette Notification : Transport Allowance (TPTA) and Travelling Allowance
Finance Ministry has released the Gazette Notification on all allowances recommended by the 7th Central Pay Commission on 7th July 2017.
Pre-Revised Rates of Transport Allowance for CG Employees
7th CPC Analysis and Recommendations on Transport Allowance: The Commission notes that TPTA is fully DA-indexed. The first issue to be considered is whether the rate of Transport Allowance should be the same for all places. There are arguments both for and against this view.
Proponents of the idea argue that petrol prices are almost same everywhere. Moreover, public transport system is better developed in many of the A1/A Class cities, thereby reducing the cost of commuting significantly. The argument, therefore, is that A1/A category places do not need to have a higher rate.
Opponents point out that the categorization of A1/A has been abolished for other purposes (like HRA, CCA) but retained for Transport Allowance. Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi, Bengaluru, Greater Mumbai, Chennai, Kolkata and seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode, Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all. (Incidentally, vide a recent notification No. 21(2)/2015-E.II(B) dated 06.08.2015, the use of term “A1/A” has been dropped for these nineteen cities. Hence, the Commission will refer to these nineteen cities as “Higher TPTA cities.”). In all these places the commuting distances are far more than in other cities. Moreover, the public transport system is not as developed as it should be in all these places. Therefore, it is argued, the distinction should remain.
After considering both the viewpoints, the Commission is of the view that by and large the commuting distances and associated difficulties involved in Higher TPTA cities are much more compared to other places. Hence, the argument that the distinction should stay is a valid one.
The second issue is whether Transport Allowance should be the same for all personnel posted at the same place. Here the Commission feels that a question of status of employee is involved and hence, complete parity is not possible.
Regarding the optimal rate of Transport Allowance, the Commission notes that the allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent and is likely to rise further before the implementation of our report, the following rates of Transport Allowance are recommended:
Officers in Pay Level 14 and higher, who are entitled to the use of official car, will ave the option to avail themselves of the existing facility or to draw the TPTA at the rate of ₹15,750+DA pm. Differently abled employees will continue to be paid at double rate, subject to a minimum of ₹2,250 plus DA.
JCM Staff Side suggestion on Transport Allowance : The 5th CPC had introduced transport allowance for employees working in classified towns on account of various factors like unprecedented growth of city limits, increase in volume of traffic and non availability of residential accommodation at reasonable rents near offices, which are usually located in the heart of cities. If these were the factors it appears that the 5th CPC did not take into account that it is usually a low paid employee who finds residence at a very long distance from his office whereas officers are offered residences very near to their offices. If, therefore, transport allowance was meant to defray the transportation charges from residence to office and back the higher rates should have been recommended for the low paid employees who were residing at a distant places. Since the 6th CPC‟s
recommendation in this regard was implemented, there had been several rounds of increase in the fuel charges making a cascading impact on the public transport fares.
Taking these factors into account, we suggest that the following rates of transport allowance may please be recommended.
At first glance, both transport allowance and traveling allowance might look the same. But, the two are very different for Central Government employees. Recent spate of orders issued by the DOPT and Finance Ministry on TRAVELLING ALLOWANCE was the inspiration behind this write-up.
|Pay Range||X classified city||Y classified towns.|
|Pay upto Rs. 75,000||Rs. 7500 + DA||Rs. 3750 +DA|
|Above Rs. 75,000||Rs. 6500 +DA||Rs. 3500+ DA|