Central government employees receive over 50 different allowances on top of basic pay — but most employees don't claim everything they're entitled to, simply because they don't know what's available. After the 7th Pay Commission, allowances were rationalized but many remain generous.
Here's the complete list, with current rates.
Major Allowances (All Employees)
1. Dearness Allowance (DA)
| Current Rate | Revised | Next Revision |
|---|
| ~55% of basic pay | January 2026 | July 2026 |
DA compensates for inflation. It's revised every January and July based on AICPT index. Every 3% DA hike on a ₹30,000 basic adds ₹900/month to your salary.
2. House Rent Allowance (HRA)
| City Classification | HRA Rate | Example (₹50,000 Basic) |
|---|
| X (Delhi, Mumbai, Chennai, etc.) | 27% of basic | ₹13,500 |
| Y (other cities) | 18% of basic | ₹9,000 |
| Z (small towns) | 9% of basic | ₹4,500 |
HRA is not paid if government accommodation is allotted. The choice between HRA and quarters depends on local market rents — in Delhi and Mumbai, quarters are almost always the better deal.
DA-linked revision: When DA crosses 25%, HRA rates increase to 27%/18%/9%. When DA crosses 50%, HRA increases to 30%/20%/10%.
The current DA has crossed 50%, so the higher HRA rates now apply.
3. Transport Allowance (TPTA)
| Pay Level | Higher TPTA Cities | Other Cities |
|---|
| Level 1–2 | ₹3,600 + DA | ₹1,350 + DA |
| Level 3–8 | ₹3,600 + DA | ₹1,350 + DA |
| Level 9+ | ₹7,200 + DA | ₹3,600 + DA |
TPTA (Transport Allowance) has DA applied on it, so effective amount is higher than base figures.
4. Children Education Allowance (CEA)
| Component | Amount |
|---|
| Tuition fee reimbursement | ₹2,250/month per child (up to 2 children) |
| Hostel subsidy | ₹6,750/month per child |
Annual claim: ₹27,000 per child for school fees, reimbursed on producing receipts. Available from nursery through Class XII.
5. Leave Travel Concession (LTC)
| Destination | Frequency | Entitlement |
|---|
| Hometown | Once every 2 years | Rail fare (AC-2 for Level 6+, AC-3 for others) |
| Anywhere in India | Once every 4 years | Rail fare or air fare (economy for Level 6+) |
LTC covers the employee + family. You must actually travel and submit tickets. Cash encashment of LTC is occasionally allowed during special schemes.
Allowances for Specific Categories
6. Military Service Pay (MSP) — Defence
| Rank | MSP |
|---|
| All officers (Lt to Brig) | ₹15,500/month |
| JCOs / Havildars | ₹5,200/month |
| Sepoy / Other Ranks | ₹5,200/month |
7. Risk/Hardship Allowance
| Category | Amount |
|---|
| High Altitude Allowance (Category I) | ₹6,300/month |
| High Altitude (Category II) | ₹10,500/month |
| High Altitude (Category III) | ₹25,000/month |
| Field Area Allowance | ₹10,500/month |
| Highly Active Field Area | ₹16,900/month |
| Modified Field Area | ₹6,300/month |
| Island Duty Allowance | ₹6,300/month |
| Counter-insurgency Allowance | ₹6,300–₹12,500/month |
| Special Duty Allowance (Border areas) | 10–30% of basic |
8. Overtime Allowance (OTA)
Available for Group C and below (not Group A/B officers):
- Calculated on basic + DA for hours worked beyond normal duty
- Rates vary by department; typically ₹50–₹150/hour
- Capped at maximum monthly amounts
| Service | Amount |
|---|
| Police / CAPF | ₹10,000–₹16,000/year |
| Defence | ₹20,000/year (Kit Maintenance Allowance) |
| Railway (some categories) | ₹5,000–₹10,000/year |
| Nursing staff | ₹5,000/year |
10. Night Duty Allowance
For employees required to work between 10 PM and 6 AM. Calculated at proportionate hourly basic + DA rate.
11. Deputation Allowance
| Posting | Rate |
|---|
| Within same station | 5% of basic |
| To different station | 10% of basic |
| To NE states / island territories | 20% of basic |
Financial Benefits (Non-Monthly)
12. New Pension Scheme (NPS)
| Component | Contribution |
|---|
| Employee contribution | 10% of basic + DA |
| Government contribution | 14% of basic + DA |
Total 24% of basic+DA goes to your retirement corpus. At ₹50,000 basic + ₹27,500 DA, that's ₹18,600/month or ₹2,23,200/year to your pension fund.
13. Gratuity
Formula: Last drawn salary × 15/26 × years of service
Maximum: ₹25 lakh (recently increased from ₹20 lakh)
14. Leave Encashment
Earned Leave (EL) accumulates up to 300 days. At retirement:
- Leave encashment = (Basic + DA) / 30 × days of EL accumulated
- On ₹80,000 basic + ₹44,000 DA at retirement, 300 days = ₹12,40,000
15. CGHS (Central Government Health Scheme)
| Coverage | What's Included |
|---|
| In-service | Employee + family (spouse, children, dependent parents) |
| Post-retirement | Continues for life |
| Hospitals | Government + empanelled private hospitals |
| Coverage | OPD, IPD, surgery, investigations, medicines |
CGHS is one of the most valuable non-cash benefits — private health insurance of equivalent coverage would cost ₹50,000–₹1,00,000/year.
16. Government Accommodation
Available based on pay level and seniority. Market-equivalent value:
| Type | Typical Area | Delhi Market Rent |
|---|
| Type I (Level 1–2) | 30–40 sq m | ₹8,000–₹12,000/month |
| Type II (Level 3–4) | 40–55 sq m | ₹12,000–₹18,000/month |
| Type III (Level 5–6) | 55–80 sq m | ₹18,000–₹30,000/month |
| Type IV (Level 7–9) | 80–120 sq m | ₹30,000–₹60,000/month |
| Type V (Level 10–12) | 120–180 sq m | ₹60,000–₹1,20,000/month |
| Type VI–VII (Level 13+) | 180+ sq m | ₹1,20,000–₹5,00,000/month |
The licence fee (rent charged by government) is far below market — making quarters an enormous hidden benefit, especially in Delhi and Mumbai.
Total Compensation Example
SSC CGL Inspector (CBDT), Level 5, Delhi posting:
| Component | Monthly Amount |
|---|
| Basic pay | ₹29,200 |
| DA (55%) | ₹16,060 |
| HRA (27%) | ₹7,884 |
| TPTA | ₹3,600 + DA = ₹5,580 |
| Gross salary | ~₹58,724 |
| Minus: NPS (10%) | −₹4,526 |
| Minus: Income tax | −₹2,000 (approx, depends on regime) |
| In-hand | ~₹52,200 |
Plus non-cash benefits:
- CGHS medical (worth ₹5,000–₹8,000/month equivalent)
- Government NPS contribution (14% = ₹6,336/month)
- CEA (₹2,250/child, up to 2)
- LTC (worth ₹20,000–₹40,000/year)
- Job security (priceless in Indian context)
Are allowances taxable?
HRA is partially exempt (subject to rent paid). TA, CEA, and most other allowances are fully taxable. Gratuity and leave encashment have exemption limits. DA is fully taxable. Medical reimbursement through CGHS is non-taxable.
Do state government employees get the same allowances?
States have their own pay commissions and allowance structures. Some states adopt central recommendations with modifications; others have independent frameworks. State allowances may be lower or higher than central — it varies significantly by state.
When are allowances revised?
DA: every January and July. HRA: linked to DA thresholds. TPTA: revised periodically by government orders. CEA: revised occasionally (last major revision with 7th CPC). Most other allowances are revised when the Pay Commission reports are implemented.
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