CCA/City Compensatory Allowances in Andhra Pradesh and Telangana State Part 1

CITY COMPENSATORY ALLOWANCES (CCA) IN ANDHRA PRADESH and TELANGANA STATES :

1.City Compensatory Allowance(CCA) is sanctioned to the employees to meet a portion of additional cost of living in addition to the Dearness Allowance and HRA for those employees who are residing in cities.
2.The rationale behind CCA is that there is an additional cost of living which is not amenable for calculation like HRA and DA.
3.It was first sanctioned to the employees in Hyderabad and Secunderabad in the year 1966.
4.Then onwards the State Government have been followed the pattern adopted by the Government of India while sanctioning CCA to the State Government employees.
5.In 1979, it was extended to the employees working in Visakhapatnam.
6.The PRC 1986 recommended adoption of the 4th Central Pay Commission rates of CCA.
7.In 1993 it was extended to the employees working in Vijayawada.
8.The PRC 1993 recommended the same increase in the rates keeping in view the increase in the cost of living.
9.Subsequently, the allowance was further extended to the employees working in the towns of Guntur, Rajahmundry and Warangal w.e.f. 1.9.1994.
10.The PRC 1999 recommended sanctioning the rates of CCA as sanctioned by the Government of India based on the recommendations of the 5th Central Pay Revision.
11.The PRC 2005 before whom several associations demanded linking the CCA to population and also to fix it as a percentage of salary without any upper limit has observed that the PRCs and Central Pay Commissions did not favour the linking of CCA with population and also did not agree for its sanction as percentage of salary without any limit.

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PRC 2005:

1. The PRC 2005 recommended various rates of CCA for the employees working in twin cities, Visakhapatnam and Vijayawada, Guntur, Rajahmundry,Warangal and other Municipal Corporations.
2. The One Man Committee 2008 has recommended revised rates of CCA for those employees who are working in the Greater Hyderabad Municipal Corporation. C.C.A. is admissible to employees who are working in twin cities (i.e.) Greater Hyderabad Municipal Corporation, Greater Municipal Corporation of Visakhapatnam, Vijayawada and in 13 Municipal Corporations at different rates.
3. The Sixth Central Pay Commission recommended for abolition of CCA on the ground that their recommendations relating to HRA and Transport Allowance had addressed the problem faced by employees in cities and large towns.

PRC 2010:

1.The Pay Revision Commission, 2010 in its Report discussed and did not recommend the Transport Allowance.
2.As regards, payment of CCA as a percentage of basic pay this proposal was not followed by Government of India or by the State Government
3.The Ninth Pay Revision Commission (PRC-2010) interalia recommended the revision of the rates of City Compensatory Allowance.
4.Government have accepted the recommendations and accordingly order the revision of rates of City Compensatory Allowance sanctioned in G.O.(P) No.215, dated:30.08.2005, G.O.(P).No.182 dated: 29.06.2006 and G.O.(P).No.273 dated:05.11.2007 of Finance (PC-I) Department.
5.Vide G.O.Ms.No. 65, Dated: 09/03/2010 new rates of City Compensatory Allowance sanctioned with effect from the 01.02.2010.

The pay for the purpose of calculation of City Compensatory Allowance shall be the pay as defined in FR 9(21) (a) (i).

These orders are applicable to:
(a) all the employees of the State Government;
(b) employees of the Local Bodies and Aided Institutions including Aided Polytechnics, in respect of those drawing pay in a regular pay scale in the Revised Pay Scales, 2010.
(c) The Work-charged establishment in respect of those drawing pay in a regular pay scale in the Revised Pay Scales of 2010.The revised rates of City Compensatory Allowance specified in para second above shall not be applicable to the following categories of employees:
(a) employees those who opt to remain in the Andhra Pradesh Revised PayScales, 2005;
(b) Teachers working in the Universities, Affiliated Degree Colleges both under Government and Aided managements who are drawing pay in the Andhra Pradesh Revised UGC/ICAR/AICTE Pay Scales; and
(c) Officers belonging to All India Services.
(d) Andhra Pradesh Higher Judicial Service and Andhra Pradesh State Judicial Service who are governed by the First National Judicial Pay Commission.