7th Pay Commission: Central govt employees to benefit from THIS rule change

New Delhi: In what could be good news for lakhs of central government employees, the Indian government has decided to do away with the cap on Composite Transfer Grant (CTG) in cases where the retiring worker settles at the last station of duty or at a place not more than 20 km away from it. 

As of now, the Central government paid one-third of the CTG to the employees who settle at the last station of duty or at a place not more than 20 km away from the last station. 

On the other hand, employees who settle down at some other place are eligible for receiving 100% of the CTG. For the unversed, the CTG is a one-time grant provided by the government to help retiring employees in shifting from the last station of duty. 

Currently, the CTG is credited at 80% of the basic pay of the last drawn salary to the Central government. However, the provides 100% of the basic pay to employees moving in or out of island territories of Andaman & Nicobar and Lakshadweep after their retirement. 

The Department of Expenditure, Ministry of Finance said, “…it has been decided that for the purpose of Composite Transfer Grant in r/o Central Government ernployee who wishes to settle down at the last station of duty or other than last station of duty after retirement, the condition of 20 km. from the last station of duty, is done away with subject to the condition that change of residence is actually involved.” Also Read: Indian economy to grow at 9.2% in FY22, surpass pre-Covid level: Centre data

“To settle down at the last station of duty or other than last station of duty after retirement, full CTG would be admissible i.e at the rate of 80% of the last month’s basic pay,” the memorandum dated January 6, 2022 read. Also Read: Finance Minister Nirmala Sitharaman asks banks to support COVID-affected sectors