[Conveyance Allowance] TPT Allowance Calculation, Deduction, Taxable Rules

7th Pay Commission Transport Allowance Rate Chart with effect from 1.7.2016 for Central Govt Employees

Transport Allowance (TA) is a type of allowance given to employees to cover their transportation expenses while commuting to and from work. It is a fixed amount paid by the employer to the employee as a part of their salary package. The purpose of this allowance is to provide some relief to employees from the ever-increasing fuel prices and transportation costs.

Many people often confuse Transport Allowance with Travelling Allowance (TA). However, the two are different from each other. Travelling Allowance is paid to employees when they are required to travel for official work, such as attending a conference or a meeting in a different city. On the other hand, Transport Allowance is paid to employees as a part of their regular salary package to cover their daily commute to the workplace. While Travelling Allowance is reimbursed based on actual expenses incurred, Transport Allowance is a fixed amount paid monthly or annually.

DA 42% from January 2023

Latest Update on DA Hike in 2022: The Union Cabinet Committee decided to provide the Dearness Allowance at the rate of 34 percent from January 2022 to all Central Government employees and pensioners. [Click to know more]

The revised rates of transport allowance for all groups of Central Government employees as per the 7th pay commission.

Revision of Transport Allowance from July 2021

Pay Matrix Level 1 and 2

• Other Cities: 900 + DA%
• TPTA Cities: 1350 + DA%

Pay Matrix Level 3 and 8

• Other Cities: 1800 + DA%
• TPTA Cities: 3600 + DA%

Pay Matrix Level 9 & above

• Other Cities: 3600 + DA%
• TPTA Cities: 7200 + DA%

How to calculate Transport Allowance in basic salary?

Calculation of Transport Allowance on Basic Salary as per the recommendations of 7th pay commission with effect from 1st July 2017.

Calculation Formula for Transport Allowance per month:

• Rate of Transport Allowance = A
• Percentage of Current Dearness Allowance = D

Transport Allowance = A + [(A x D)/100]

Transport Allowance = [(Dearness Allowance x Rate of Transport Allowance)/100] + Rate of Transport Allowance

For example, if an employees’ basic salary is Rs. 49,000 in pay level 6 and he is working in Metro:

• Transport Allowance = 3600 + (3600 x 17) / 100
• The amount of Transport Allowance is Rs. 4212 per month.

Transport Allowance Enhanced to Pay Matrix Level 1 and Level 2

According to the order issued by the Department of Expenditure on 2nd August 2017, employees who are drawing of Rs. 24,200 and above in Pay Matrix Level 1 and Level 2 shall be eligible for grant of Transport Allowance at the rate of Rs. 3600 plus Dearness allowance per month for metro cities and Rs. 1800 plus Dearness allowance per month for all other cities.

Amendment order regarding Transport Allowance on 2.8.2017 (7440 issue settled) – Click to View the Order

Transport Allowance Calculation Formula

DA on Transport allowance calculation: The existing percentage of Dearness allowance is applicable for Transport allowance also. Apart from the amount of Transport allowance, the specific percentage of Dearness allowance will be calculated from the rate of TA and added to the Transport Allowance. A simple formula is given below for better understanding the calculation:

Amount of Transport Allowance = TA + [(DA% x TA)/100]

TPTA Cities: *Ahmedabad (UA), Bengaluru (UA), Chennai (UA), Coimbatore (UA), Delhi (UA), Ghaziabad (UA), Greater Mumbai (UA), Hyderabad (UA), Indore (UA), Jaipur (UA), Kanpur (UA), Kochi (UA), Kolkata (UA), Kozhikode (UA), Lucknow (UA), Nagpur (UA), Patna (UA), Pune (UA), Surat (UA).

7th Pay Commission Travelling Allowance Chart