Saturday, 9 September 2017


CPSE- Location based Compensatory Allowances and Non- Practicing Allowance (NPA)

No. W-02/0028/2017-DPE (WC)-GL-XVI/ 17
Government of India
Ministry of Heavy Industries and Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawan
Block No. 14, C. G. O. Complex,
Lodhi Road, New Delhi-110003
Dated: 7th September, 2017


Subject:-Pay Revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017-decision on Location based compensatory allowances and Non-Practicing Allowance (NPA)

The undersigned is directed to refer to para 10 of this department's O.M. of even No. dated 3rd August, 2017 and sub-para 3(b) of para 1 of OM of even No. dated 4th August, 2017 regarding the issue of separate guidelines in respect of Location based Compensatory Allowance and Non-Practicing Allowance. After due consideration, the Government has decided on Location based Compensatory Allowance and Non-Practicing Allowance as follows:

Location based Compensatory Allowance:

(i) For serving in North-East States and Ladakh Region:

Assam, Meghalaya, Manipur, Nagaland, Tripura, Arunachal Pradesh, Mizoram and Sikkim
10% of Basic Pay
Ladakh Region
10% of Basic Pay

(ii) For serving in Island territories of Andaman and Nicobar (A&N) Islands and Lakshadweep:

Areas around Capital Towns (Port Blair in A&N Islands, Kavaratti and Agatti in Lakshadweep)
10% of Basic Pay
Difficult Areas (North and Middle Andaman, South Andaman excluding Port Blair, entire Lakshadweep except Kavaratti, Agatti and Minicoy)
16% of Basic Pay
More Difficult Areas (Little Andaman, Nicobar group of Islands, Narcondam Islands, East Islands and Minicoy)
20% of Basic Pay

(iii) Special allowance: For serving in the difficult and far flung areas

Areas Covered
Percentage of Basic Pay
Part 'A' (Areas covered under Annexure-I of D/o Expenditure O.M. No. 3/ 1 /2017-EII(B) dated 19.7.2017)
8% of Basic Pay
Part 'B' (Areas covered under Annexure-II of D/o Expenditure O.M. No. 3/1/2017-EII(B) dated 19.7.2017)
6% of Basic Pay
Part 'C' (Areas covered under Annexure-III of D/o Expenditure O.M. No. 3/1/2017-EII(B) dated 19.7.2017)
4% of Basic Pay
Part D' (Areas covered under Annexure-IV of D/o Expenditure O.M. No. 3/1 /2017-EII(B) dated 19.7.2017)
3% of Basic Pay

(iv) In the event of a place falling in more than one category, i.e. (i)/(ii) and (iii) mentioned above, in that case only the higher rate of allowance will be admissible.

Non-practicing Allowance (NPA):

NPA upto 20% of Basic Pay would be paid to Medical Officers. NPA will not be considered as pay for the purpose of calculating other benefits. 

2. The allowances specified in this O.M. will be outside the purview of Ceiling of 35% of Basic Pay under 'Cafeteria Approach' and would be effective from the date of issue of presidential directive.

(RajeshKumar Chaudhry)
Joint Secretary to the Government of India 

Location based Compensatory Allowances & NPA for CPSEs [Download]

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