7th Pay Commission (Central Government Employees CTG Rule: The Government has modified the Composite Transfer Grant (CTG) rule.
7th Pay Commission (Central Government Employees) Latest News 2022: The Union Government has modified the Composite Transfer Grant (CTG) rule for retiring Central Government Employees who wish to settle down at the last station of duty or at any other place.
Till now, one-third of CTG was admissible if the employee wished to settle down at the last station of duty or at a station not more than 20 km from the last station of duty.
The Government has now decided to do away with the condition of 20 km from the last station of duty. However, to claim the grant, an actual change of residence must be involved. So, as per the modified rule, Central Government Employees can get full CTG (i.e. 80% of the last month’s basic pay) to settle down at the last station of duty or at any place other than the last station of duty post-retirement.
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100% of the last month’s basic pay would be paid in case of settlement to and from the island territories of Andaman & Nicobar and Lakshadweep.
“…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,” the Department of Expenditure, Ministry of Finance said in an Office Memorandum dated January 6, 2022.
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“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,” it added.
The O.M. further said that in case of settlement to and from the island territories of Andaman & Nicobar and Lakshadweep, CTG shall be paid at the rate of lOO% of last month’s Basic Pay.
How to claim CTG
The Central Government Employee will have to submit a Self declaration Certificate regarding change of residence in prescribed format to make the CTG claim.
What 7th Pay Commission said on CTG
According to the 7th Pay Commission, retiring Central Government employees are entitled to specific travel allowances as entitlements, including Composite Transfer and Packing Grant (CTG).
The CTG is paid at 80% of last month’s Basic Pay to retired employees for settling at locations more than 20 km away. 100% of basic pay is admissible in case of transfers to and from lakshdweep, Andaman and Nicobar Islands.
“The Commission notes that CTG is payable to both serving as well as retiring employees upon their transfer at a similar rate of one month’s Basic Pay last drawn. In line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, it is recommended that CTG should be paid at the rate of 80 percent of last month’s Basic Pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay,” 7th Pay commission had recommended.
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