Consolidated guidelines on Rent/HRA, Vigilance Deputation, City re-classification, DA, PRP and Casual Worker Pay in CPSEs.

Consolidated guidelines on Rent/HRA, Vigilance Deputation, City re-classification for HRA, DA Pattern, PRP and Casual Worker Pay in Central Public Sector Enterprises (CPSEs): Department of Public Enterprises O.M. No. 13.01.2026

F.No.W-02/0001/2026-DPE(WC)/FTS-14614
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan,
Block 14, CGO Complex, Lodhi Road,
New Delhi-110003
Date: 13.01.2026

Office Memorandum

Subject: Consolidated guidelines on accommodation-related entitlements during temporary stay, vigilance deputation pay options, city re-classification for accommodation purposes, DA pattern adoption, and ‘Equal Pay for Equal Work’ compliance in Central Public Sector Enterprises (CPSEs).

Reference:

1. DPE’s OM No. W-02/0027/2022-DPE (WC)-GL-XXIII/2022 dated 02.12.2022.
2. DPE’s OM No. W-02/0054/2018-DPE (WC)-GL-XVII/19 dated 22.07.2019.
3. DPE’s OM No. 2(27)/10-DPE (WC)-GL-XXIV/2010 dated 03.12.2010.
4. DoPT’s letter No. 20011/2/2010-AIS-II dated 29.03.2012.
5. DoPT’s OM No. 6/8/2009-Estt. (Pay.II) dated 17.06.2010.
6. DoPT’s OM No. 40/2/2018-EO (MM-CVO) 01.07.2019.
7. DPE’s OM No. 2(46)/2012-DPE (WC)-GL-XIII /2015 dated 07.09.2015.
8. DoE’s OM No.2/5/2014-E.II (B) dated 21.07.2015.
9. DPE’s OM No. 2(46)/2012-DPE (WC)-GL-VIII /2021 dated 25.08.2021.
10. DoE’s OM No.2/4/2018-E.II (B) dated 25.02.2020.
11. DPE’s OM No. 2(68)/11-DPE (WC) dated 31.12.2012.
12. DPE’s OM No. 2(68)/11-DPE (WC)-GL-V/14 dated 10.02.2014.
13. DPE’s OM No. 2(41)/09-DPE (WC)-GL-XX/2009 dated 10.08.2009.
14. DPE’s OM No. W-02/0038/2019-DPE (WC)-GL-XVIII/19 dated 13.09.2019.
15. BPE’s D.O. No. 2(145)/72-BPE (WC) dated 31.07.1984.

The Department of Public Enterprises had earlier issued guidelines on various matters mentioned in the subject line concerning employees of Central Public Sector Enterprises (CPSEs). These guidelines have now been consolidated to ensure clarity, uniformity, and ease of reference.

A. Reimbursement of rent/Payment of HRA to Board level and below Board level executives, Non-Unionized Supervisors and CVO of CPSEs during their temporary stay (up to a maximum period of six months) in Guest Houses run by CPSE/Central Government/State Government/Autonomous Organizations etc.1

2. As per reference received from Central Vigilance Commission (CVC), some Board level and below Board level executives, Non-Unionised Supervisors and Chief Vigilance Officer (CVO) of CPSES are staying in Guest Houses run by CPSE/Central Government/State Government/Autonomous Organizations etc. by paying the subsidized room rent charges and simultaneously claiming House Rent Allowance (HRA).

3. Effective 02.12.2022, it was decided that Board level and below Board level executives, Non-Unionised Supervisors and CVO of CPSEs on their appointment/transfer/posting to a new station, necessitating change of residence, if they temporarily stay in State Bhavans/Guest Houses/Departmental Guest Houses run by CPSE/Central Government/State Government/Autonomous Organizations etc., may be reimbursed the amount of rent paid subject
to the fulfilment of the following conditions:

a) The official has applied for accommodation of his/her entitlement, but has not been allotted residential accommodation by the concerned CPSE.

b) The concerned Guest House should be located at the place of posting of the official.

c) The official must have stayed in Guest Houses run by CPSE/Central Government/State Government/Autonomous Organisation and submit rent receipts in support of payment of rent.

d) Reimbursement of rent shall be admissible up to a maximum period of six months.

e) No House Rent Allowance (HRA) shall be admissible during this period.

B. Eligibility of pay, allowances, status, benefits, perks and perquisites of CVOs posted on deputation in CPSEs.2

5. With reference to Department of Public Enterprises (DPE)’s OM No. 2(27)/10-DPE(WC)-GLXXIV/2010 dated 03.12.20103 allowing option to vigilance functionaries on deputation to CPSEs and Department of Personnel & Training (DOPT)’s OM No. 40/2/2018-EO(MM-CVO) dated 01.07.2019 on the subject cited above and to reiterate the followings:

i) Officers appointed as CVO at Joint Secretary level, Director level and Deputy Secretary level would only draw pay at level-14, level-13 and level-12 of the Pay Matrix (7th CPC) respectively according to the level at which they have been working in the cadre and their allowances, benefits, perks & perquisites would be accordingly governed.

ii) Matters related to pay fixation would be governed by DOPT’s letter No 20011/2/2010-AIS-II dated 29.03.20124 (for All India Services) and OM No 6/8/2009-Estt. (Pay.II) dated 17.06.20105 (for Central Services) as amended from time to time.

iii) The CVOs would not be entitled to any Performance Related Pay (PRP).

C. Allowing vigilance functionaries on deputation to CPSEs the option to draw pay either in the scale of pay of the CPSE concerned or pay in the parent cadre plus deputation (duty) allowance thereon plus personal pay, if any – Cabinet decision.

6. This is with reference to Department of Personnel & Training O.M. No. 372/21/2009-A VDIII dated 12.10.2010 and to state that para ‘3’ of aforesaid DoPT’s O.M. No. 372/21/2009-A VDIII dated 12.10.2010 has modified (with the approval of Cabinet) the DPE O.M. No. 2(70)/08-DPE(WC) dated 26.11.2008 (Annex IV, point No. iv refers) to the extent indicated therein (DoPT O.M 372/21/2009-A VD-III dated 12.10.2010).

7. In this regard a reference is invited to DPE O.M. No. 10(2)/09-DPE (WC)-GL-XV-09 dated 08.06.2009, which is based on the recommendations of the Anomalies Committee. In view of the position explained in para 6 above, DPE O.M. No. 10(2)/09-DPE (WC)-GL-XV-09 dated 08.06.2009 is also modified to the effect as indicated in para 6 above.

8. It was clarified that in view of DPE O.M. 2(70)/08-DPE (WC) dated 26.11.2008 read with DOPT O.M. dated 12.10.2010, effective date of above provisions in respect of CVOs and other officers on deputation to the vigilance Department of CPSEs would be 01.01.2007. However, provisions as contained in DPE O.Ms 2(70)/08-DPE (WC) dated 26.11.2008 and DPE O.M. No 10(2)/09-DPE(WC)-GL-XV-09 dated 08.06.2009 will be relevant in respect of all Government Officers who come on deputation to CPSEs in posts other than CVOs and other officers on deputation to the Vigilance Department of CPSEs.

D. Re-classification/Upgradation of Cities/Towns on the basis of Census – 2011 for the purpose of grant of House Rent Allowance (HRA) for CPSE employees7

9. This is with reference to para ‘7’ of DPE No. OM 2(70)/08-DPE (WC) dated 26.11.2008, para ‘2(iii)’ of OM dated 02.04.2009 and DPE OM dated 07.01.2013 on Re-classification/Upgradation of Cities/Towns.

10. Department of Expenditure, vide OM No. 2/5/2014-E.II(B) dated 21.07.20158, has reclassified the cities/towns on the basis of Census-2011 as “X”, “Y” and “Z” for the purpose of HRA as enumerated in the Annexure below.

11. It has been decided that the re-classification of cities/towns on the basis of Census 2011 for the purpose of grant of HRA as contained in the Department of Expenditure vide OM No. 2/5/2014-E.II(B) dated 21.07.2015 would also be implemented in the Central Public Sector Enterprises with effect from 01.04.2015.

12. These guidelines would be applicable to the employees of CPSEs who are on 2007 IDA pay scale and also to the employees on 6th CPC recommendation based CDA pay scales.

ANNEXURE to O.M. No.2/5/2014-E.II (B) dated 21.07.2015

LIST OF CITIES/TOWN CLASSIFIED FOR GRANT OF HOUSE RENT ALLOWANCE

* Only for the purpose of Extending HRA on the basis of dependency.
** Mathura-Vrindavan Municipal Corporation was added in the table as per DOE vide OM NO 2/4/2018-E.II(B) dated 25.02.20202, endorsed by DPE vide OM No OM NO 2(46)/2012-DPЕ (WC)-GL-VIII /2012 dated, the 25.08.202110, which was effective from 01.03.2020.

NOTE
The remaining cities/towns in various States/UTs which are not covered by classification as ,X or ‘Y’, are classified as ‘Z’ for the purpose of HRA.

E. Payment of Performance-related Pay (PRP) to executives of Central Public Sector Enterprises (CPSEs) in the absence of APAR1

13. With reference to Ministry of Housing & Urban Poverty Alleviation’s O.M. No. 1-14020/1/2011-HR dated 07.09.2011, DPE had laid down guidelines providing for timely completion of the process of recording of Annual Performance Appraisal Reports (APARs) of executives of CPSEs and therefore all attempts should be made to finalize the APAR ratings of individual executives by following the laid down process as APAR ratings determine the payment of PRP. In the absence of APAR ratings, it would not be possible to pay PRP in terms of extant guidelines.

14. Department of Public Enterprises had considered the issues raised by the Ministry of Housing & Urban Poverty Alleviation regarding:

(i) Procedure to be followed in the matter of payment of PRP to executives of CPSEs, where no APARs were recorded, and
(ii) Payment of PRP to an executive who served a CPSE for a period less than three months in a particular financial year and when no APAR has been recorded for that period.

15. Department of Public Enterprises had decided that exceptions to the position brought out in para 14 above could be allowed only in cases where APAR process could not be completed due to the following reasons:

(i.) Demission of office and/or retirement of officer reported upon before the initiation of APAR.

(ii.) Demission of office and/or retirement of reviewing/accepting authority before writing the APAR of the officers reported upon.

(iii.)Non-recording/non-availability of APAR for the concerned period including the cases where the period of recording APAR is less than 3 months.

16. However, there could be other reasons also for non-availability of APAR and a considered view in such case(s) would be taken by DPE if such situations are brought to the notice of DPE by the concerned administrative Ministry/Department.

17. It is clarified that in case APAR rating of a Board level executive of a CPSE is not available for the relevant period for the reasons brought in para 15 above, APAR rating of the concerned Board level executive may be considered as one grade lower than the MOU rating of the concerned CPSE for the relevant financial year for the purpose of payment of PRP.

18. The payment of PRP to the concerned Board level executive(s) may be formalized as per laid down procedure for the consideration and approval by the Remuneration Committee of the concerned CPSE.

19. It is further clarified that above dispensation would not cover the case where APAR could not be completed because of the delay on the part of the executive being reported upon (in submission of self-assessment, etc.).

20. The DPE’s OM No. 2(68)/11-DPE (WC) dated 31.12.2012 addressed to MoHUA (paragraphs 13-19 above) was issued to all administrative Ministries/Department vide DPE OM No. 2(68)/2011-DPE (WC) dated 10.02.201412.

F. Appointment / promotion of the employees of CPSEs in CDA scales of pay on or after 01.01.1989,13

21. This is with reference to Para 3(iii) of this Department’s O.M. No. 2(43)/90-DPE (WC) dated 12.6.1990 which, inter alia, provides that all appointments made on or after 01.01.1989 in respect of all categories of employees by the CPSEs would be deemed to have been governed by the IDA pay scales and IDA. The aforesaid O.M. dated 12.6.1990 is in pursuance of the Supreme Court Judgment dated 03.05.1990 giving directions for implementation of the report of High-Powered Pay Committee.

22. Para 3(ii) of the Supreme Court Judgment dated 03.05.1990 provides that the employees appointed on or after 01.01.1989 will be governed by such pay scales and allowances as may be decided by the Government in its discretion. Those appointed earlier with IDA pattern will continue to be governed in accordance with the terms and conditions of their appointment.

23. Earlier references were received from certain Ministries/CPSEs wherein a question had been raised as to whether the word ‘appointment’ as mentioned in para 3(ii) of Supreme Court’s Judgment dated 03.05.1990, Annexure-I to the DPE O.M. dated 12.06.1990 on the subject of implementation of High Powered Pay Committee’s recommendations, includes ‘promotion’ also. The matter was considered in consultation with Ministry of Law & Justice, Department of Legal Affairs. It was held that recruitment includes any method provided for inducting a person in public service. Appointment, selection, promotion and deputation are all well-known methods of recruitment. The words ’employment’ or ‘appointment’ have been held to be wide enough to include the matter of promotion including promotion to selection posts.

24. On the issue whether ‘appointment’ includes ‘promotion’, the clarification as per Para 23 above was given on a case-by-case basis. This issue has been raised again by some Ministries/CPSEs in the context of recent pay revision in the case of employees of both CDA and IDA pay scales in CPSEs. It is again emphasized that there is no change in the position as given in para 23 above.

25. In case there are any Court Cases/Court Orders relating to CDA/IDA pattern of employees in a particular CPSE, the Administrative Ministry/CPSE should take into account the implications of such Court Cases/Court Orders while switching over employees from CDA pattern of pay scales to IDA pattern of pay scales.

G. ‘Equal pay for Equal work’ for Casual Workers: Compliance with Hon’ble Court’s Judgments.14

26. On the above subject, with reference to various instructions issued by the Hon’ble Supreme Court and also to the DOPT’s OM No. 49014/1/2017-Estt. (C) pt. dated 04.09.2019, the following provisions are hereby extended to casual worker/daily wager employed by Central Public Sector Enterprises (CPSEs):

(i)Where the nature of work entrusted to the casual workers and regular employees is the same, the casual workers may be paid at the rate of 1/30th of the pay at the minimum of the relevant pay scale plus dearness allowance for work of 8 hours a day.

(ii) In cases where the work done by a casual worker is different from the work done by a regular employee, the casual worker may be paid only the minimum wages notified by the Ministry of Labour & Employment or the state Government/Union Territory Administration, whichever is higher as per the Minimum Wage Act, 1948.

(iii) Persons on daily wages (casual workers) should not be recruited for work of regular nature.

H. Adoption of Industrial D.A. Pattern by Newly Formed CPSEs – Compliance with Government Policy 15

27. It is the established policy of the Government that all Central Public Sector Enterprises (CPSEs) should adopt a pay structure aligned with the Industrial Dearness Allowance (IDA) pattern. Explicit instructions were issued by the Bureau of Public enterprises vide Office Memorandum No. 2(2)/80-BPE(WC) dated 21.07.1981, stipulating that no newly constituted CPSE should be allowed to operate under the Central D.A. pattern. Instead, such enterprises must adopt the Industrial D.A. pattern and corresponding pay scales from inception. Accordingly, it was requested that all concerned authorities take appropriate and necessary steps to ensure strict compliance with the policy. No new CPSE should henceforth be permitted to adopt the Central scales of pay and D.A. pattern.

28. All administrative Ministries/Departments are requested to take necessary action and also bring the contents of this Office Memorandum to the notice of CPSEs under their respective administrative jurisdiction for information and compliance under intimation to this Department.

(Dr. Sumantra Pal)
Economic Adviser

View/Download the PDF