7th CPC RECOMMANDATIONS ON DAILY ALLOWANCE

Daily Allowance

8.15.12 Daily allowance is meant to cover living expenses when employees travel out of their headquarters for work. Presently it is in the form of reimbursement of staying accommodation expenses, travelling charges (for travel within the city) and food bills, payable at the following rates:

Grade Pay	Hotel Accommodation	Food Bill	Local Travel
GP>=10,000	Rs.7500	Rs.750	AC taxi charges of up to 50 km for travel within the city
7600 <=GP<= 8900	Rs.4500	Rs.450	Non-AC taxi charges of up to 50 km per diem for travel within city
5400 <=GP<= 6600	Rs.2250	Rs.300	Non-AC Taxi up to Rs. 225
4200 <=GP<= 4800	Rs.750	Rs.225	Non-AC Taxi up to Rs. 150
GP < 4200	Rs.450	Rs.150	Non-AC Taxi up to Rs. 75

For journeys on foot, undertaken in organizations like FSI, Survey of India, GSI, etc. for data collection purposes, an additional allowance of Rs.7.5 per km travelled on foot shall be payable.

8.15.13 The existing dispensation is different for Railway employees who are paid a flat sum because they are currently not entitled to stay in any accommodation other than Railway rest houses. The lump-sum rates for Railway personnel are as follows:

Entitlement for DA	GP>=10,000	Rs. 780 per day
	7600 <=GP<= 8900	Rs. 690 per day
	5400 <=GP<= 6600	Rs. 600 per day
	4200 <=GP<= 4800	Rs. 510 per day
	GP < 4200	Rs. 316 per day
Amount payable	If absence from HQ <6 hrs	30% of DA
	If absence from HQ is between 6-12 hrs	70% of DA
	If absence from HQ >12 hrs	100% of DA

8.15.14 Representations received regarding this allowance primarily deal with the reimbursement procedure, as it is claimed that getting hotel bills (in small towns) and food bills is not always practical.

Analysis and Recommendations

8.15.15 The Commission considered the present model of this allowance, followed both in Railways and in other ministries. It is proposed to adopt the best from both of them so that the administration of the allowance can be simplified. Accordingly the following is recommended:

a) Reimbursement of staying accommodation charges

Level	Ceiling for Reimbursement
14 and above	Rs. 7500
12 and 13	Rs. 4500
9 to 11	Rs. 2250
6 to 8	Rs. 750
5 and below	Rs. 450

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be Rs.1000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

b) Reimbursement of travelling charges

Level	Ceiling for Reimbursement
14 and above	AC Taxi charges up to 50 km
12 and 13	Non-AC Taxi charges up to 50 km
9 to 11	Rs. 338 per day
6 to 8	Rs. 225 per day
5 and below	Rs. 113 per day

Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self certified claim only. The self-certified claim should clearly indicate the period of travel, vehicle number, etc. The ceiling for levels 11 and below will further rise by 25 percent whenever DA increases by 50 percent. The rate of allowance for foot journeys shall be enhanced from the current rate of Rs.7.5 per km to Rs.12 per km travelled on foot. This rate also shall further rise by 25 percent whenever DA increases by 50 percent.

There will be no separate reimbursement of food bills. Instead, the lump sum amount payable will be as per Table 1 below and, depending on the length of absence from headquarters, would be regulated as per Table 2 below. Since the concept of reimbursement has been done away with, no vouchers will be required. This methodology is in line with that followed by Indian Railways at present (with suitable enhancement of rates).

i. Lump sum amount payable

Table 1

Level	Lump Sum Amount
14 and above	Rs. 1200
12 and 13	Rs. 1000
9 to 11	Rs. 900
6 to 8	Rs. 800
5 and below	Rs. 500

The Lump sum amount will increase by 25 percent whenever DA increases by 50 percent.

ii. Timing restrictions

Table 2

Length of absence	Amount payable
If absence from headquarters is <6 hours	30% of Lump sum amount
If absence from headquarters is between 6-12 hours	70% of Lump sum amount
If absence from headquarters is >12 hours	100% of Lump sum amount