Cabinet Decision on 7th CPC Transport Allowance

Cabinet Decision on 7th CPC Transport Allowance

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Cabinet Committee has decided to implement the recommendations of 7th CPC on Transport Allowance without any change.

In its official report, “For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA).

Accordingly, fully DA-indexed allowances such as Transport Allowance were not given any raise.

Allowances not indexed to DA were raised by a factor of 2.25 and the partially indexed ones by a factor of 1.5.

The quantum of allowances paid as a percentage of pay was rationalised by a factor of 0.8.”