For Central Government employees seeking career growth, Deputation is a prime avenue. However, the financial benefit—specifically the Deputation (Duty) Allowance—is often miscalculated. With the Dearness Allowance (DA) crossing 50%, the ceiling limits for Deputation Allowance have been revised automatically by 25%, offering a significant jump in take-home pay for 2026.
Deputation Allowance 2026: The “Same Station” Rule
The allowance amount depends entirely on whether your transfer involves a change of station (residence). DoPT strictly differentiates between the two:
- Same Station Deputation: 5% of Basic Pay.
- Outstation Deputation: 10% of Basic Pay.
- Condition: No allowance if the deputation is within the same department or cadre.
Revised Ceiling Limits 2026 (Post-50% DA Hike)
Under the 7th Pay Commission rules, allowances indexed to DA increase by 25% when DA hits 50%. Since DA is currently 60-62% (Jan 2026 projection), the maximum caps for Deputation Allowance have officially increased.
| Deputation Type | Old Ceiling (Pre-50% DA) | New Ceiling (2026) | Rate |
|---|---|---|---|
| Same Station | ₹4,500 per month | ₹5,625 per month | 5% of Basic Pay |
| Outstation | ₹9,000 per month | ₹11,250 per month | 10% of Basic Pay |
Option 1 vs Option 2: Which Pay Fixation is Better?
When joining a deputation post, you have two choices for salary fixation. Making the wrong choice can cost you ₹10,000+ per month.
- Option A (Parent Pay + Allowance): Best if the new post is at the same or lower Level. You keep your current basic, earn increments in your parent cadre, and get the 5%/10% allowance.
- Option B (Pay of New Post): Best if the deputation post is a Higher Level (Promotion). You get pay fixation (Next Cell + Increment) but NO Deputation Allowance.
Tenure & “Cooling Off” Rules 2026
The standard deputation tenure is 3 years, extendable up to 5 years with HOD approval, and 7 years with Minister-in-Charge approval. Exceeding this without a “Cooling Off” period (usually 3 years) can lead to:
- Immediate stoppage of Deputation Allowance.
- Forfeiture of service for pension (Dies Non) in extreme cases.
- Debarment from future foreign/central deputations.
Frequently Asked Questions (FAQ)
Q: Can I get Deputation Allowance on Proforma Promotion?
A: No. If you get a Proforma Promotion in your parent cadre while on deputation, your pay is re-fixed, but you cannot claim the allowance on the higher pay scale if you opted for the borrowing department’s pay.
Q: Is Deputation Allowance taxable?
A: Yes, it is fully taxable under the head “Salaries.”
Q: Has the 8th Pay Commission proposed a hike?
A: Unions have demanded the allowance be raised to 10% (Same Station) and 20% (Outstation) with the removal of ceiling limits, but this is currently a proposal.
Share this calculation with colleagues planning a deputation to ensure they choose the right Pay Fixation Option.
