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Special Allowance for Employees of CDA pattern in CPSEs

Pay Revision of Employees following CDA pattern in CPSEs

The Seventh Central Pay Commission has made various recommendations regarding Special Allowance for child care for women with disabilities. These recommendations are crucial for ensuring that women with disabilities receive adequate support when it comes to caring for their children. Implementing these decisions is of utmost importance to ensure that these women can lead fulfilling lives and provide the best care possible for their children. It is essential that these recommendations are followed through promptly and effectively, providing these women with the support they need and deserve.

No.A-27012/03/2017-Estt.(AL)
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Personnel & Training

New Delhi, 16th August, 2017

Subject: Recommendations of the Seventh Central Pay Commission — implementation of decisions relating to Special Allowance for child care for women with disabilities

Consequent upon the decision taken by the Government on the recommendations made by the Seventh Central Pay Commission for providing extra benefits to women employees with disabilities especially when they have young children and children with disability, the President is pleased to issue the following instructions:-

(i) Women with disabilities shall be paid Rs.3000/-per month as Special Allowance for Child care. The allowance shall be payable from the time of the child’s birth till the child is two years old.

(ii) It shall be payable for a maximum of two eldest surviving children.

(iii) Disability means a person having a minimum Disability of 40% as elaborated in Ministry of Welfare’s Notification No. 16-18/97-NI.I dated 1.6.2001 and amended from time to time.

(iv) The above limit would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

2. These orders shall be effective from 1st July, 2017.

3. Insofar as persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and auditor General of India.

Hindi version will follow.

S/d,
(Navneet Misra)
Under Secretary to the Govt. of India

What is CDA pattern?

The CDA pattern is the Central Dearness Allowance pattern followed by central government employees. It is applicable to employees of the central public sector enterprises (CPSEs) as well.

Who is eligible for the special allowance?

Employees of CPSEs who follow the CDA pattern are eligible for the special allowance.

How much is the special allowance?

The special allowance is calculated as a percentage of an employee’s basic pay and is revised from time to time.

How is the special allowance different from dearness allowance?

The special allowance is a separate allowance provided to employees of CPSEs who follow the CDA pattern. It is different from the dearness allowance, which is provided to employees of the central government and is also based on the CDA pattern.

Is the special allowance taxable?

Yes, like other allowances, the special allowance is taxable as per the Income Tax Act.

Is the special allowance applicable to all CPSE employees?

No, the special allowance is applicable only to the employees who follow the CDA pattern. Employees of CPSEs who follow other patterns are not eligible for the special allowance.

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