7th Pay Commission recommendation – Travelling allowance on transfer

| December 1, 2015

7th Pay Commission recommendation – Travelling allowance on transfer

TA on Transfer – Composite Transfer and Packing Grant (CTG) recommended for 80% of last month’s Basic Pay and 100 % for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep

Presently it has four components: (a) Travel entitlement similar to Travelling Allowance, (b) Composite Transferand Packing grant (CTG), (c) Reimbursement of charges on transportation of personal effects, and (d)Reimbursement of charges on transportation of conveyance.

Personnel posted in Island Territories have sought higher  CTG on account of greater expenditure involved in transferring their household goods to and from the mainland.

Besides other demands for increase in entitlements, it has been brought to the notice of the Commission that when transfer is from a Class Z city to another Class Z city, the reimbursement for transportation of personal effects is granted at a lower rate compared to when the transfer is to a Class X or Class Y city. Uniformity has been sought in this regard.

Analysis and Recommendations

Each of the four components is discussed separately:

a.   Travel entitlement–This is discussed under the topic of “Travelling Allowance.”

b.   Composite Transfer and Packing Grant (CTG)–The Commission notes that CTG is payable to both serving as well as retiring employees upon their transfer at a similar rate of one month’s Basic Pay last drawn. In line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, it is recommended that CTG should be paid at the rate of 80 percent of last month’s Basic Pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay. Presently NPA and MSP are included as a part of Basic Pay while determining entitlement for grant of CTG. The Commission finds no justification for doing so, as the expenditure and inconvenience involved in relocation on transfer/retirement is similar for all employees. Hence, no other add-ons should be allowed in Basic Pay while calculating CTG.

c.   Reimbursement  of  charges  on  transportation  of  personal  effects–The  following provisions are recommended:

Level

By Train/Steamer Rate for Transportation by Road
12 and above 6000 kg by goods train/4 wheeler wagon/1 double container ₹50 per km
6 to 11 6000 kg by goods train/4 wheeler wagon/1 single container ₹50 per km

5

3000 kg

₹25 per km
4 and below

1500 kg

₹15 per km

The rates will further increase by 25 percent each time DA rises by 50 percent.

The Commission notes that rates for transportation by road are already on a per km basis, and finds no merit in differentiating between classes of cities for this purpose. Hence, considerations of class of city have been done away with.

d.   Reimbursement of charges on transportation of conveyance–The present provisions to this effect are adequate. Accordingly, the following is recommended:

Level

Reimbursement

6 and above One motor car etc. or one motorcycle/scooter
5 and below One motorcycle/scooter/Moped/bicycle

Category: Finance Ministry, Seventh Pay Commission

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