7th CPC Construction Projects – Grant of Project Allowance

7th CPC Project Allowance and Compensatory (Construction/Survey) Allowance

The 7th Central Pay Commission (CPC) has introduced a new project allowance along with a compensatory allowance for construction and survey work. The project allowance is aimed at providing financial assistance to government employees who are working on specific projects where there is a need for additional skills and expertise. The compensatory allowance, on the other hand, is designed to compensate employees who are involved in construction and survey work in remote or difficult areas. These allowances are meant to provide adequate compensation for the hard work and dedication of government employees who are working tirelessly to improve the infrastructure and facilities in the country.

7th CPC Construction Projects – Project Allowance

Implementation of the recommendations of 7th Central Pay Commission – Construction Projects – Grant of Project Allowance

No.6/1/2017-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 19th July, 2017

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of 7th Central Pay Commission – Construction Projects – Grant of Project Allowance.

Consequent upon the acceptance of the recommendations of Seventh Central Pay Commission by the Government, the President, is pleased to decide that, in modification of this Ministry’s -O.M. No.20011/5/73-E.II(B) dated.17.01.1975 as amended from time to time and OM. No.6(3)/2008-E.II(B) dated 29.08.2008 on the subject mentioned above, the Central Government employees shall be paid Project Allowance, which has been covered in the Risk/Hardship Matrix, at the following revised rates:-

3. The term ‘Pay Level’ in the revised pay structure means the ‘Level in the Pay Matrix.

4. In respect of those employees who opt to continue in their pre-revised pay- structure, corresponding Grade Pay in the prescribed pay band as indicated in CCS(Revised) Pay) Rules, 2016 would determine the allowance under these orders.

5. These rates shall increase by 25 per cent whenever the Dearness Allowance payable on the revised pay structure goes up by 50 per cent.

6. All other terms and conditions governing the grant of this allowance shall remain unchanged.

7 These orders shall take effect from 1st July, 2017.

8. These orders shall also apply to the. civilian employees paid from the Defence Services Estimates and the expenditure will be charge-able to the relevant head of the Defence Services Estimates in regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

9. In so far as the employees. working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Hindi version is attached.

sd/-
(Annie George Mathew)
Joint Secretary to the Government of India

Click to view the order

Authority: www.doe.gov.in

The 7th CPC Construction Projects – Project Allowance is designed to provide a financial supplement to civilian employees that are working on construction projects for the government.

Employees at Level 9 and above are eligible for a rate of Rs. 3,400 per month and those at Level 8 and below are eligible for Rs. 2,700 per month. These rates will increase by 25% when the Dearness Allowance applicable to the revised pay structure increases by 50%.

Civilian employees paid from the Defence Services Estimates are eligible for the allowance.

The Ministry of Defence and Ministry of Railways issue separate orders for Armed Forces personnel and Railway employees respectively.