Tuesday, May 30, 2023

Diffence between Compensatory Allowance and Subsistence Allowance?

Diffence between Compensatory Allowance and Subsistence Allowance? Question Asked in HPFAS 2008

COMPENSATORY ALLOWANCE:-

(1) Compensatory Allowance is an allowance granted to a Government Servant to meet personal expenditure necessitated by the special circumstances in which duty is performed.

(2) Grant of compensatory allowance should be so regulated that the allowance is not on the whole a source of profit to the recipient.

(3) Example of Compensatory Allowance:- Daily Allowance, Tough Location Allowance, Special (Duty) Allowance, Project Allowance, Hard Area Allowance and Risk Allowance.


SUBSISTENCE ALLOWANCE:-

(1) Subsistence Allowance is a monthly allowance granted to a government servant when he is under suspension and is based on the pay drawn by him immediately before suspension.

(2) Subsistence Allowance determined on the basis of basic pay, pay level of the post or fixed.

(3) Entitlement of the Subsistence Allowance to Government servant shall be 50% of Basic Pay.

For Example; If Basic Pay is Rs. 10000 + DA @ Rs. 10%

Then Subsistence Allowance will be Basic Pay Rs. 5000 +DA  Rs.500 = Rs. 5500

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