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TRANSPORT ALLOWANCE IN SEVENTH PAY COMMISSION

Transport Allowance (TPTA) is granted to cover the expenditure involved in
commuting between place of residence and place of duty.

The existing rates are as under:

 Employees Drawing
 A1/A Class City
(₹ pm)
 Other Places
(₹ pm)
 GP 5400 and above
 3200 + DA
 1600 + DA
 GP 4200 to GP 4800 and other employees drawing GP lesser than 4200 but pay in the pay band equivalent to ₹7440 and above
 1600 + DA
 800 + DA
 GP lesser than 4200 and pay in the pay band below ₹7440
  600 + DA
 300 + DA











8.15.45 Moreover, officers drawing GP 10000 and higher, who are entitled to the use of official car, have the option to avail  themselves of the existing facility or to draw the TPTA at the rate of ₹7,000+DA pm. Differently abled employees are granted this allowance at double the rate, subject to a minimum amount of ₹1,000 plus DA.

8.15.46 Many representations have been received regarding Transport Allowance.
Most of them advocate granting the allowance at the same rate to  all employees, irrespective of theirplace of posting, on the grounds that  fuel prices affect everybody equally.

Analysis and Recommendations

8.15.47 The Commission notes that TPTA is fully DA-indexed.

8.15.48 The first issue to be considered is whether the rate of Transport Allowance should be
the same for all places. There are arguments both for and against this view.

8.15.49 Proponents of the idea argue that petrol prices are almost same everywhere.
Moreover,public transport system is better developed in many of the A1/A Class cities, thereby reducing the cost of commuting significantly. The argument, therefore, is that
A1/A category places do

Report of the Seventh CPC

8.15.50 Opponents point out that the categorization of A1/A has been  abolished  for other purposes (like HRA, CCA) but retained for
 Transport Allowance.
Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi,Bengaluru, Greater Mumbai,Chennai, Kolkata and  seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow  and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode,  Indore, Coimbatore and Ghaziabad have been added to A1/A categories, making it nineteen in all.  (Incidentally, vide a recent notification No. 21(2)/2015-E.II(B)
dated 06.08.2015, the use of term “A1/A” has been dropped for these nineteen cities. Hence, the Commission will refer to these nineteen cities  as “Higher TPTA cities.”). In all these places the commuting distances are  far more than in other cities. Moreover, the public transport system is not
 as developed as it should be in all these places. Therefore, it is argued, the distinction should remain.


8.15.51 After considering both the viewpoints, the Commission is of the view that by and large
the commuting distances and associated difficulties involved in Higher TPTA cities are much
more compared to other places. Hence, the argument that the distinction should stay is a valid
one.

8.15.52 The second issue is whether Transport Allowance should be the same for all personnel
posted at the same place. Here the Commission feels that a question of status of employee is
involved and hence, complete parity is not possible.

8.15.53 Regarding the optimal rate of Transport Allowance, the Commission notes that the
allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent
and is likely to rise further before the implementation of our report,

the following rates of

Transport Allowance are recommended:

 Pay Level
 Higher TPTA Cities
(₹ pm)
 Other Places
(₹ pm)
 9 and above
  7200+DA 
 3600+DA
 3 to 8
 3600+DA 
 1800+DA
 1 and 2 
 1350+DA 
 900+DA







8.15.54 Officers in Pay Level 14 and higher, who are entitled to the use of official car, will ave
the option to avail themselves of the existing facility or to draw the TPTA at the rate of
₹15,750+DA pm. Differently abled employees will continue to be paid at double rate, subject
to a minimum of ₹2,250 plus DA.

Source:http://www.7cpc.india.gov.in/pdf/sevencpcreport.pdf


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