Huge Relief! THIS Rule Change Will Benefit Central Government Employees. Read All You Need To Know Here

7th Pay Commission: The government, earlier, gave one-third of the CTG if an employee decides to settle within 20 kilometres or at the last station. The cap has been done away with.

Updated: January 11, 2022 3:13 PM IST

By India.com Business Desk | Edited by Raghav Aggarwal

7th Pay Commission Latest News Today
Chief Minister Bhagwant Mann termed the move as a Diwali gift for the state staff.

New Delhi: In the latest development, the central government has decided to do away with the limit on the Composite Transfer Grant (CTG) where the retiring employees settle within 20 kilometres or at the last station of duty. The news is expected to benefit thousands of central government employees.

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The government, earlier, gave one-third of the CTG if an employee decides to settle within 20 kilometres or at the last station. According to the new rule, the employees will get full CTG irrespective of the last posting station. The CTG is 80 per cent of the last month’s basic pay. However, for the rule to hold, the employee must relocate. Even if the employee settles within 20 km, full CTG will be paid.

The memorandum released by the Department of Expenditure under the Ministry of Finance said, “It has been decided that for the purpose of Composite Transfer Grant in r/o Central Government employee 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…Full CTG would be admissible to settle down at the last station of duty or other than the last station of duty following retirement, i.e. at the rate of 80 percent of the last month’s basic salary.”

What Is CTG And How To Claim It

CTG is a one-time payment given by the central government to its retiring employees in order to financially help them relocate. In the case of UTs of Andaman and Nicobar and Lakshadweep, 100 per cent of the basic pay of the last month’s salary is given as CTG.

To claim it, the employee must submit a self-declaration certificate of relocation. The format of the certificate has been pre-decided by FinMin.

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Published Date: January 11, 2022 1:01 PM IST

Updated Date: January 11, 2022 3:13 PM IST