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7th Pay Commission Ration Money Allowance

Ration Money Allowance for Defence, CAPF and Delhi Police

Revised Rate of Ration Money Allowance 2020

Recommendations on Ration Money Allowance in 7th Pay Commission Report

Ration Money Allowance (RMA) is paid to all personnel of Defence forces and nongazetted personnel of CAPFs, Delhi Police, IB, A&N police and such personnel of Indian Reserve Battalions (IRBn) as are posted in Andaman and Nicobar Islands and don’t dine in the mess. The existing rate of this allowance is Rs. 95.52 per day for Non-Gazetted personnel and Rs. 79.93 per day for Gazetted personnel.

There are demands to extend RMA to gazetted officers of CAPFs in line with Defence forces. Demands have also been received from some CAPFs that RMA should be exempted from the purview of income tax.

Analysis and Recommendations

Ration Money Allowance is revised periodically by Ministry of Defence and Ministry of Home for their personnel. Hence, it is proposed that status quo be maintained regarding the rates of this allowance.

However, regarding the admissibility of RMA, PBORs of CAPFs and Indian Coast Guard should be eligible to draw RMA irrespective of the place of posting (except when in receipt of the Detachment Allowance). Presently, officers of SSB who are posted in field areas at altitudes of less than 7000 feet are not eligible for RMA. This restriction of 7000 feet should be removed.

Regarding income tax exemption of RMA, the Commission, as part of its general approach, has refrained from making recommendations involving income tax. However, looking into the unique service conditions of CAPFs, the Commission is of the view that since RMA is granted in lieu of free rations, it should be exempt from income tax. It is further recommended that the provision of free rations and the grant of Ration Money Allowance to officers of Defence forces posted in peace areas should be withdrawn.

Allowances Committee on Ration Money Allowance (RMA)

The Committee has also noted that the 7th CPC has recommended that the grant of Ration Money Allowance (RMA) to officers posted in peace areas be withdrawn. The Committee has examined Overtime Allowance as well as Ration Money Allowance along with the allowances recommended for abolition. As such, a total of 53 allowances (52 recommended by CPC + RMA) are being discussed in this chapter.

Ration Money Allowance

Existing Provisions: Ration Money Allowance (RMA) is paid to all personnel of Defence forces and non-gazetted personnel of CAPFs, Delhi Police, IB, A&N police and such personnel of Indian Reserve Battalions (IRBn) as are posted in Andaman and Nicobar Islands and don‟t dine in the mess. The existing rate of this allowance is Rs. 95.52 per day for NonGazetted personnel and Rs. 79.93 per day for Gazetted personnel.

Recommendations of 7th CPC: Summary of the recommendations of 7th CPC is as under:

  • a. Status quo be maintained regarding the rates of this allowance as the rate is revised periodically by MoD / MHA for their personnel.
  • b. Regarding the admissibility of RMA, PBORs of CAPFs and Indian Coast Guard should be eligible to draw RMA irrespective of the place of posting (except when in receipt of the Detachment Allowance). Presently, officers of SSB who are posted in field areas at altitudes of less than 7000 feet are not eligible for RMA. This restriction of 7000 feet should be removed.
  • c. Looking into the unique service conditions of CAPFs, RMA should be exempt from income tax.
  • d. The provision of free rations and the grant of Ration Money Allowance to officers of Defence forces posted in peace areas should be withdrawn.

Demands

  1. Ministry of Defence: This allowance may be continued in peace areas and may be paid in cash.
  2. Special Protection Group (SPG): Ration Money Allowance may be granted to SPG at par with BSF.

Analysis and Recommendations of the Committee:

The Committee is of the view that the recommendations of the 7th CPC may be accepted with modifications. This may be as per suggestions made by MoD that Ration Money Allowance may continue to be paid to officers. The cash may be credited directly into the bank account of officers. This will benefit approximately 43473 officers. The additional financial implication is estimated to be Rs. 150.40 crore per annum. The demand of SPG is outside the purview of this Committee.

The issue of income tax exemption for RMA may be separately taken up with Department of Revenue.

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