Friday, 23 July 2010

Allowances Admissible to Central Government Employees.

By various reasons, The Government of India allow so many allowances to Central Government Employees. Let us learn about some important allowances and the eligibility.

C.E.A or Children Education Allowance: - This allowance is given to a Government Servant who has married and have two school going children. The maximum amount of allowance is Rs. 12000/- per year per child. This is for the school tuition fee, Uniform including shoe and for Books and bags. The student must study in a recognized regular school and the actual expense of the above mentioned items Rs. 12000/- per child whichever is less is admissible. If both father and mother are government employees only one can avail this allowance. This allowance will be increased by 25% when the D.A (Dearness Allowance) become 50% or more, which may be happened in Next January (January – 2011).

H.R.A (House Rent Allowance): This is another allowance to government employees and is available only if he husband or wife has not provided government accommodation. This is a major amount at present because it is 30% of Basic (Basic + Grade pay) in major cities and 20% and 10% to other cities as per the grade admissible by government. If both husband and wife are government servant it is a big decrease of Total salary in the family. So there is a tendency in such condition they opt to purchase a house and repay the loan with the H.R.A of both.

Transport Allowance: Transport allowance is according to the grade pay. If an employee have a grade pay or Rs. 5400 or more gets Transport allowance of Rs. 3200 + %of D.A (if D.A is 35%, T.A would be 3200 + 35% of 3200 = Rs. 4320).

If Grade is pay is less than Rs. 5400 and more than or equals to Rs. 4200 or if Basic – Grade pay is more than Rs. 7440 the Transport allowance would be Rs. 1600 + % of D.A and others gets Transport allowance of Rs. 600 + % of D.A

Dearness Allowance: This is an important allowance and it is according to the Consumer Price Index. It is supposed that the D.A is given to meet the price rising tendency. But now this is an important allowance and when the D.A exceeds 50% some particular allowances also will be increased by 25%. Those allowances are Children Education Allowance, Child Care Allowance, Washing Allowance, Cycle Allowance, Cash Handling Allowance, Conveyance Allowance, and Split Duty Allowance. Some advances like Flood Advance, Festival Advance also will be increased by 25% when D.A exceeds 50%.

Related Posts


14% D.A Increase To Kerala Government Employees

Why D.A (Dearness Allowance) is more awaited than Increment

11 comments :

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  2. [...] Allowances Admissible to Central Government Employees … [...]

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  3. well written blog. Im glad that I could find more info on this. thanks

    ReplyDelete
  4. My cousin recommended this blog and she was totally right keep up the fantastic work!

    ReplyDelete
  5. [...] D.A (Dearness Allowance) is more awaited than Increment Allowances Admissible to Central Government Employees. This entry was posted in Employees News, Personal Finance and tagged Central [...]

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  6. Very enlightening and beneficial to someone whose been out of the circuit for a long time.

    - Kris

    ReplyDelete
  7. Hey, I can't view your site properly within Opera, I actually hope you look into fixing this.

    ReplyDelete
  8. GYANA RANJAN MALLA6 January 2011 at 04:08

    Transport allowance will be increased by 25% when D.A. Exceeds 50% ?

    ReplyDelete
  9. No. Because Transport allowance is increasing always when DA is increasing.

    I mean
    600 + % OF da OF 600
    1600 + % OF da OF 1600
    3200 + % OF DA OF 3200
    sO NO INCREASE IN TA OF 25% WHEN DA REACHES 50%.

    ReplyDelete
  10. Why for school going children only. Should a Govt. employee not let his children study beyond 10+2 ? What a funny policy of Govt. of India.............. I suggest the Govt. to extend this facility of CEA beyond 10+2, as the parents have to pay very hefty fees for the colleges/other institutions. Please think over it and positively act accordingly.

    ReplyDelete
  11. Pawan Kumar nim21 March 2012 at 04:12

    is there be double transport allowance for split duty employyes

    ReplyDelete