Special Compensatory (Hill Area) Allowance – Recommendation of the Sixth Central Pay Commission – Revision of Rates

No.4(2)/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure
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New Delhi, 29^th August, 2008.

OFFICE MEMORANDUM

Subject: Special Compensatory (Hill Area) Allowance – Recommendation of the Sixth Central Pay Commission – Revision of Rates.

The undersigned is directed to say that the recommendations of the Sixth Central Pay Commission relating to the Special Compensatory (Hill Area) Allowance have been considered by the Government. The President is pleased to decided that, in modification of this Ministry’s O.M.No.5(3)-E.II(B)/64 dated 29.5.1964 as amended from time to time and O.M.No.4(3)/97/E.II(B), dated 17-8-1998. Special Compensatory (Hill Area) Allowance to the Central Government employees shall be admissible at the following rates:-

Category	(Rate Categoryper month in Rs.) Altitude of the place at 1000 Metres and above Mean Sea Level
For Posts in the grade Pay of Rs.5400 and above and pay scale of HAG – and above	600/-
For Posts in the grade Pay of less than Rs.5400	480/-

2. In case of those employees who opt to retain the pre-revised scale of pay, corresponding Grade Pay of the pay scale / corresponding pay scale of the post occupied on 1.1.2006, as indicated in CCS(Revised Pay) Rules, 208 would determine the allowance under these orders.

3. The rate of this allowance shall automatically increased by 25%, whenever the Dearness Allowance Payable on the revised pay structure goes up by 50%.

4. All other terms and conditions governing grant of Special Compensatory (Hill Area) Allowance shall continue to be applicable.

5. These orders shall be effective from 1st September,2008.

6. In places where more than one Special Compensatory (Hill Area) Allowance is admissible, the Central Government employees posted in such stations will have the option to choose the allowance which benefits them the most.

7. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant Head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

8. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.

9. Hindi version is attached.

(Madhulika P.Sukul)
Joint Secretary to the Govt. of India