Report of the Seventh CPC

Analysis and Recommendations

8.17.56 The Commission took note of the fact that the amount of this allowance is the lowest
among all allowances. This allowance has been subsumed in Composite Personal Maintenance
Allowance and, therefore, should be abolished as a separate allowance.

Hard Area Allowance

8.17.57 Hard Area Allowance, at the rate of 25 percent of Basic Pay, is granted to Central
Government employees on their posting to the Nicobar and Lakshadweep groups of Islands.
This is paid in addition to ISDA. There are demands to increase the rate of this allowance.
Analysis and Recommendations
8.17.58 In line with our recommendations on percentage based allowances, Hard Area
Allowance should be rationalized by a factor of 0.8 to 20 percent of Basic Pay.

Internet Allowance, Mobile Phone Allowance, Newspaper Allowance

8.17.59 These allowance are administered differently in ministries as per their requirements.
Some ministries provide Mobile Phones and Internet connections to their employees, while
others compensate their employees for these services in monetary terms, ranging from 200
pm to 3,000 pm. There are demands to raise these allowances.
Analysis and Recommendations
8.17.60 There is no doubt that these allowances are required in the present times. However,
they should lead to efficiency in administration also. As such, it is suggested that all ministries
should have a comprehensive database of their employees, including their mobile numbers and
email addresses. This database should be available on the website of the concerned ministry.
8.17.61 The ministries should continue dealing with these allowances on their own,
subject to the ceilings notified by the Ministry of Finance from time to time. The present
ceilings should, however, be raised by 25 percent and the entire amount should be paid,
lump sum, to the eligible employees without the need for production of vouchers.

Investigation Allowance

8.17.62 Investigation Allowance is granted in Serious Fraud Investigation Office, Ministry of

Corporate Affairs, to attract talent pool from other ministries. The existing rates are as under:
per month)
Grade Pay Rate
8700 2000
6600 1400
5400 1400
4800 1400

Index