7th Pay Commission: Central govt employees to get benefits from THIS new rule change- Check details here

New Delhi: The Centre has agreed to remove the cap on Composite Transfer Grant (CTG) in cases where the retiring employee settles at the last station of duty or within 20 kilometres of it, which is great news for thousands of government employees.

Until now, the Centre has paid one-third of the CTG to employees who settle at the last duty station or within 20 kilometres of the last duty station.

The Centre has now decided to eliminate the criterion of being 20 kilometres from the last duty station. However, in order to be eligible for the grant, you must relocate. According to the revised criteria, government employees are eligible for full CTG (i.e., 80% of the previous month's basic pay) to settle down in their last station of duty or any other location after retirement.

For the uninitiated, the CTG is a one-time award issued by the federal government to assist retired employees in relocating from their previous duty station.

The CTG is currently credited to the Central government at 80% of the last drawn salary's basic wage. Employees moving in or out of the island regions of Andaman & Nicobar and Lakshadweep after retirement, on the other hand, receive 100% of their basic wage.

"It has been decided that for the purpose of Composite Transfer Grant in r/o Central Government employee who wishes to settle down at the last station of duty or other than last station of duty after retirement, the condition of 20 km. from the last station of duty is done away with subject to the condition that change of residence is actually involved," the Department of Expenditure, Ministry of Finance, said in a notification.

"Full CTG would be admissible to settle down at the last station of duty or other than the last station of duty following retirement, i.e. at the rate of 80 percent of the last month's basic salary," the ministry's memorandum states.

How to claim CTG

To be eligible for CTG, a government employee must submit to the Central government a self-declaration certificate regarding a change of residence in the approved format, and the grant will be provided as a result.