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Seventh Pay Commission Report: Sumptuary Allowances & Entertainment Allowance

Report of Seventh Central Pay Commission

Chapter 8.13 Sumptuary Allowances 

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Allowances Covered

8.13.1 Alphabetical list of Allowances covered here is as under:
1. Entertainment Allowance for Cabinet Secretary
2. Entertainment Allowance in Indian Railways
3. Official Hospitality Grant in Defence forces
4. Sumptuary Allowance in Training Establishments
5. Sumptuary Allowance to Judicial Officers in Supreme Court Registry

Present Position

8.13.2 At present, sumptuary allowances are granted to various grades of personnel in the Central Government, to compensate for the expenditure incurred on entertaining visitors.
8.13.3 An Entertainment Allowance of Rs.10,000 pm is granted to Cabinet Secretary to entertain distinguished visitors.
8.13.4 Similar allowance is granted to officers of Indian Railways also, the existing rates of which are as under:
( Rs. per annum)
PHOD 6000
DRM 6000
CWM 5000
SAG 4500
SG/JAG 2500
STS (Independent Charge) 2000
STS 1600
JTS 1000

8.13.5 In the Ministry of Defence, this allowance goes by the name of Official Hospitality Grant, with the following rates:
( Rs. per month)
Service Chiefs/VCs/ Army Cdrs 3000
Leftinent General 2400
Major General 1800
Brigadier 1500
COs of a Ship-Captain Rank 1200
Naval Officer-in-charge/CO up to Cdr 600

8.13.6 There exists a Sumptuary Allowance in National/Central Training Establishments for Group `A’ Officers, meant for entertaining small groups of students and faculty. The existing rates are:

For Director or Head Rs.3500 pm
For Course Directors Rs.2500 pm
For Counsellors Rs.2000 pm

Demands Received

8.13.8 There are general demands for raising the amount of these allowances.

Analysis and Recommendations

8.13.9 The structure of these allowances is quite haphazard, and the rates vary widely. Moreover, they are paid only in certain ministries, not across the board.
8.13.10 With the rise in pay scales offered by successive Pay Commissions, including the present one, we are of the view that these allowances have lost their relevance. Accordingly, it is recommended that all these allowances should be abolished. Such expenditure on hospitality should be treated as office expenditure and the Ministry of Finance should lay down the ceilings for various levels.

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