Special Allowance in India - Rates and Exemption from Income Tax

Special Allowance for Higher Education

Special Allowance on passing SAS Examination on promotion to next higher post:

The element of Special Allowance granted on passing SAS Examination may be treated as a standalone element i.e. Special Allowance of Rs. 360 for 1st year and Rs. 630 from 2nd year onwards.
Dearness Allowance and other allowances on Special Allowance will not be admissible.
Special Allowance will be admissible till the government servant is not promoted to the next higher post/grade on passing SAS Examination.
On promotion to the next higher post after passing the SAS examination, the element of special Allowance shall not be taken into account for fixation of pay on promotion to the next higher post.
On such promotion, the pay of such OS will be fixed as per Rule 13 of CCS(RP) Rules 2016.
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Special Allowance is a significant hike in salary package to the employees working with remarkable skill.

Special Allowance in India – Employees in Govt and Private Sectors

The special allowance is a specific part of the salary for the employees working in a different situation than others. Generally, allowances are taxable, however, some allowances are exempted from Income Tax.

Special Allowance Calculation in Basic Salary

Dearness allowance is paid for government employees only. It is calculated based on their basic salary (7th matrix pay). Special Allowance is paid in different manners to the employees working in the government and private sectors. In private companies, special allowance is purely based on their efficiency on their projects and their profit-making capabilities. However, the amount of the allowance may not be shown in their salary slips as specifically, include as an increment in basic salary. But, house rent allowance (HRA) and transport allowance (TA) are calculated as per the basis salary (basic pay) of individual employees and the same as printed in their salary slips. Special allowance may not give a specific percentage of basic salary. The special allowance is not common for all, it is paid for particularly. Working conditions and expenses incurred for special duties with care are the main criteria for granting this extra benefit.

In the government sector in India, a special allowance is paid according to the recommendations of the pay commissions to central government employees. Special pay may also be paid to employees performing special duties at the discretion of the governing rules. The bank staff and officers are granted a special allowance in accordance with the settlement of Bipartite.

Comparison of Dearness allowance (DA) and Special Allowance

There are no relevant features between dearness allowance and special allowance. Dearness allowance is paid to all government employees and officers without any conditions. Whereas the special allowance may be paid only to the staff working with extraordinary or Sustainable Talent.

Also Check: Revision of Special Allowance to Teachers after 7th Pay Commission – MHRD Orders issued on 28 January 2019

Special Allowance to Bank Staff

Special allowance for bank employees and officers is concerned, in accordance with the Bipartite settlements, the allowance rates have been fixed. In Tenth BPS the Special Allowance has been introduced to sub-staff.

Special Duty Allowance

The central government employees who are working in the northeast region and Ladakh areas, 10 percent of the basic salary (7th matrix pay) is paid as Special Duty Allowance (SDA).

Island Special Duty Allowance

Areas around the Capital Towns (Port Blair, Kavaratti, and Agatti) – 10% of Basic Pay
Difficult Areas (North and Middle Andaman, South Andaman excluding Port Blair, entire Lakshadweep except Kavaratti, Agatti, and Minicoy) – 16% of Basic Pay
More Difficult Areas (Little Andaman, Nicobar group of Islands, Narcondum Islands, East Islands, and Minicoy) – 20% of Basic Pay.

Tough Location Allowance

This Allowance has been introduced in lieu of Bad Climate Allowance, Special Compensatory (Remote Locality Allowance), Sunderban Allowance, and Tribal Area Allowance.

Special Forces Allowance

Officers (R1H1) Rs. 25,000 per month
JCOs/ORs & equivalent Rs. 17,300 per month

Special Allowance for Child Care for Women with Disabilities

The 7th pay commission suggested enhancing the allowance by double.
Rs. 3,000 per month per child

Special Allowance to Chief Safety Officers/Safety Officers

Methodology of fixation of pay on promotion to SO(A/c)AAO on account of passing SAS Part-II/Appendix-II Examinations which involves Special Allowance

The element of Special Allowance granted on passing SAS Examination may be treated as a standalone element i.e. Special Allowance of Rs. 360 for 1st year and Rs. 630 from 2nd year onwards.
Dearness Allowance and other allowances on Special Allowance will not be admissible.
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Special Allowance in India Rates and Exemption from Income Tax

Special Allowance in India – Rates and Exemption from Income Tax