Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 14th July, 2017.


Subject : Implementation on the recommendations of 7th Central Pay Commission regarding grant of Hard Area Allowance to the Central Government employees posted in the Nicobar Group of Islands and Islands of Union Territory of Lakshadweep other than Kavaratti & Agatti.

Consequent upon the acceptance of the recommendations of Seventh Central Pay Commission by the Government, the President, in supersession of all existing orders issued on the subject from time to time, is pleased to decide that Central Government employees posted in Nicobar Group of islands and Minicoy, Kiltan, Andrott, Kalpeni, Chetlat, Kadmat, Amini and Bithra Islands of Lakshadweep shall be paid Hard Area Allowance at the following rates:

Place where posted Rate per month
(i) Nicobar Group of Islands and Minicoy in Lakshadweep Islands 20% of Basic Pay
(ii) Lakshadweep Group of Islands
(Kiltan, Andrott, Kalpeni, Chetlat, Kadmat, Amini and Bithra Islands)
12% of Basic Pay

2. The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like Special Pay, etc.

3. In places where more than one Special Compensatory Allowances are admissible, the Central Government employees posted in such stations will have the option to choose the allowance which benefits them the most, i.e. Hard Area Allowance or one of the Special Compensatory Allowances subsumed under Tough Location Allowance Category-I, II and III.

4. The Hard Area Allowance shall be admissible in addition to the Island Special Duty Allowance, where admissible.

5. These orders shall take effect from 1st July, 2017.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

Hindi version is attached.

(Nirmala Dev)
Deputy Secretary to the Government of India