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Consolidated Guidelines on Accommodation-Related Entitlements for CPSE Employees 2026

February 2, 2026 admin Leave a Comment

This consolidated Office Memorandum brings together all major instructions issued earlier regarding accommodation, deputation, HRA classification, PRP, pay structure policies, and equal pay compliance for Central Public Sector Enterprises (CPSEs).

Reimbursement of Rent & HRA During Temporary Stay

The guidelines cover Board-level and below Board-level executives, Non-unionised Supervisors, and CVOs of CPSEs during their temporary stay at a new posting location.

  • Eligible to stay in State Bhavans, CPSE/CG/State Guest Houses, or Autonomous Body Guest Houses.
  • Reimbursement permitted up to six months.
  • No HRA is admissible during this period.
  • Guest House must be located at the place of posting.
  • Rent receipts are mandatory for reimbursement.

Pay, Allowances & Benefits for CVOs on Deputation

  • CVOs will draw pay only at Pay Matrix Level-14, Level-13, or Level-12 based on their parent cadre posting.
  • Pay fixation follows DoPT rules.
  • No PRP (Performance Related Pay) is admissible to CVOs.

Pay Options for Vigilance Officers on Deputation

Vigilance officers deputed to CPSEs may choose between:

  • Parent cadre pay, or
  • CPSE pay scale + deputation (duty) allowance

The revised rules apply from 01.01.2007.

City Classification for HRA Based on Census 2011

The OM includes a detailed list of cities under X, Y, Z categories. Some major classifications are:

CategoryCities
XMumbai (UA), Pune (UA), Delhi (UA), Ahmedabad (UA), Bengaluru (UA), Chennai (UA), Kolkata (UA)
YVadodara, Surat, Gurugram, Faridabad, Coimbatore, Jaipur, Lucknow, Kanpur, Indore, Bhopal, Jabalpur, Mathura-Vrindavan, Noida, etc.
ZAll remaining cities/towns not listed in X or Y category

These classifications apply to CPSE employees on IDA 2007 pay scales and 6th CPC-based CDA pay scales. Re-classification of Cities for HRA as per Census 2011. DPE consolidated the reclassification guidelines based on Census 2011. HRA City Categories (X, Y, Z);

  • X Category: Greater Mumbai (UA), Pune (UA), Ahmedabad (UA), Bangalore/Bengaluru (UA), Chennai (UA), Delhi (UA), Kolkata (UA)
  • Y Category: Large UAs including Vadodara, Surat, Faridabad, Gurugram, Jabalpur, Bhopal, Indore, Coimbatore, Salem, Jaipur, Lucknow, Kanpur, Noida, Mathura-Vrindavan MC, etc.
  • All other cities/towns fall under Z category.

PRP (Performance Related Pay) in Absence of APAR

PRP eligibility is tied to APAR completion. In exceptional cases, PRP may still be processed when APAR could not be recorded due to:

  • Retirement/demise of reporting officer
  • Retirement/demise of reviewing/accepting officer
  • Period of service less than 3 months

If APAR is unavailable for valid reasons, the executive may be considered one grade below the MoU rating for PRP calculation.

Appointment & Promotion Under CDA Scales (After 01.01.1989)

DPE clarified that:

  • All employees appointed on or after 01.01.1989 follow CDA pay scales.
  • Employees appointed earlier on IDA pattern continue as per original terms.
  • “Appointment” includes recruitment, selection, promotion, and deputation.

Equal Pay for Equal Work for Casual Workers

As per Supreme Court rulings, CPSEs must ensure:

  • Casual workers doing same work as regular employees get 1/30th of minimum pay + DA for 8 hours daily.
  • If work is different, they must receive statutory minimum wages.
  • Daily wage workers must not be deployed for regular duties.

Adoption of Industrial DA Pattern for Newly Formed CPSEs

The Government mandates that all newly constituted CPSEs must:

  • Adopt the IDA pay structure from inception.
  • Not be allowed to operate under the Central DA (CDA) pattern.

The 2026 consolidated DPE guidelines bring clarity and uniformity across accommodation entitlements, HRA rules, deputation pay, PRP, employee appointments, and equal pay norms in CPSEs. These comprehensive instructions aim to streamline HR and administrative processes across all Central Public Sector Enterprises.

Download Original Notification PDF

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