7th Pay Commission: Modification Of CTG Rule & Benefits For Central Govt Employees

The year 2022 has started on a positive note for the Central Government employees. The Centre has now decided to do away with the cap on the admissibility of Composite Transfer Grant (CTG) on retirement.

The Department of Expenditure (Ministry of Finance) recently modified the CTG rule for the retiring Central government employees who wish to settle down at the last station of duty or at any other place. As per existing rules, one-third of CTG is admissible at present for settling down at the last station of duty or at a station not more than 20 km from the last station of duty.

“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,” an office order read.

However, the Department has clarified, “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 employee has to submit a self-declaration certificate regarding change of residence.”

Similarly, 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, the order added.