6th Pay Commission: Govt. decisions related to allowances for central govt employees in India

List of different allowances: 

• dearness allowance
  - old practice of sanctioning twice a year as on 1st January and 1st July payable with the salary of March and September, respectively will continue.
  - DA shall be admissible @ 2, 6, 9, 12 & 16% from 1-7-2006, 1-1-2007, 1-7-2007, 1-1-2008 & 1-7-2008, respectively
• City Compensatory Allowance (CCA)
  
  - abolished
• Project Allowance
  
  - Rs.1500 p.m. For posts in the grade pay of Rs.5400 and above; Rs.1000 p.m. for posts in the grade pay of less than Rs.5400
• Special Compensatory (Hill Area/Remote Locality)
  
  - Special Compensatory Allowance for Gandhinagar and Special Compensatory (Border Area) Allowance Abolished.
  
  - Special (Duty) Allowance for postings to North East Regions at the existing rates to all Central Government employees on their posting on transfer to any North East Region.
  - The Special (Duty) Allowance as well as other concessions allowed to the Government employees in North East region were extended to the Government employees posted in Ladakh.
• Island Special (Duty) allowance
  - made available to all Central Government employees on their posting on transfer to any place in these Islands without insisting on an all India transfer liability.
• Hard Area Allowance
  - Hard Area Allowance to the employees posted in the Nicobar group of Islands separately along with Island Special (Duty) Allowance and broadened to the Lakshadweep group of islands.
• To know the details of Traveling/Daily Allowance, TTA & LTC: Details of TA, TTA, & daily allowances & LTC are given Here
• Transport Allowance
  - the existing condition which prohibits grant of Transport Allowance to the employees who have been provided with official accommodation within one Kilometer of the office is removed.
  - Employees in pay band PB-4 who are entitled to the use of official car for travel between residence and office may be given the option to draw transport allowance at a higher rate of Rs.7000 p.m. plus dearness allowance provided they give up the use of official car for travel between residence and office.
  - for employee at lowest level Rs 600/- in A1 cities and Rs 400/- in other cities; Employee in PB 1 with Rs 5400/- as grade pay will be provided TA @ Rs 1600/Rs800; Employees with grade pay above Rs 5400 will get Rs 3200 in A1 & Rs 1600. DA will be added on this amount to all employees.
• House Rent Allowance
  - HRA in A-1 cities (now categorized as "X") be paid at the rate of 30% of the total of revised pay in the running pay band and grade pay thereon.
  - Erstwhile A, B-1 and B-2 categories are merged into "Y" class cities
  -Other cities are classified as "Z".
  - HRA will be paid @30, 20 & 10 rates to employees residing in "X", "Y" & "Z" cities
• Education Allowance
  # Children education allowance will be admissible to school going children only i.e. from class nursery to twelfth.
  
  # now onwards, education allowance will not be stopped even if child fails in the examination
  # both education allowance and hostel subsidy can not be availed concurrently
  # Reimbursement of education will include expanditure incurred on one set of books and notebooks, one pair of shoes, two sets of uniform, and school fees etc.
  * merger of Children Education Allowance and Reimbursement of Tuition Fee
  * reimbursement upto the maximum of Rs.1000 per child per month subject to a maximum of 2 children.
  
  * hostel subsidy reimbursement allowed upto the maximum limit of Rs.3000 per month per child. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised pay bands goes up by 50%.