News Alert: The Department of Public Enterprises (DPE) has issued a consolidated guideline dated 02 February 2026 clarifying the payment of Transport Allowance to Divyangjan (Persons with Disabilities) employees in Central Public Sector Enterprises (CPSEs). The order confirms that the Double Transport Allowance paid to PwD employees remains exempted from the 50% ceiling of perks and allowances.
This consolidation ensures that CPSE executives and non-unionised supervisors with benchmark disabilities (40% or more) continue to receive financial support for commuting without affecting their “Cafeteria Approach” perks limit (which is generally capped at 35% or 50% of Basic Pay).
Understanding the Exemption Rule
In CPSEs, perks and allowances are usually calculated under a “Cafeteria Approach,” where the total value cannot exceed 35% of the Basic Pay. However, for Divyangjan employees, the cost of commuting is higher.
The Calculation Logic:
- Normal TA: Counted within the 35% Perks Ceiling.
- Additional (Double) TA: The extra amount paid to PwD employees is EXCLUDED from this ceiling.
- Impact: This ensures that a PwD employee does not lose out on other benefits (like HRA or Medical) just because they receive a higher transport allowance.
For city-wise rates, employees should verify their location classification in the Latest Transport Allowance Tpta Rates 2026 City List to know the base rate before doubling.
| Component | Normal Employee | Divyangjan (PwD) Employee |
|---|---|---|
| Transport Allowance Rate | Normal Rate (e.g., ₹7,200) | Double Rate (e.g., ₹14,400) |
| Perks Ceiling (35%/50%) | Included | Additional Amount Exempted |
| Effective Date | — | Consolidated Feb 2026 |
| Eligibility | All Staff | Min 40% Disability (Benchmark) |
Eligibility for Double Transport Allowance
To claim this benefit, the employee must possess a valid Disability Certificate issued by a competent medical authority showing a disability of 40% or more. This applies to blindness, orthopaedic handicap, deafness, and other benchmark disabilities defined under the RPwD Act, 2016.
Employees who are provided with a government vehicle or staff car are not eligible for this allowance. If you are posted in a higher TPTA city, check the Latest Higher Tpta Cities List Transport Allowance Rates to confirm if your city qualifies for the maximum slab.
Reference to DPE OM
The latest consolidated guideline (OM No. W-02/0002/2026-DPE(WC)) reiterates the instructions from previous orders (2018 and 2022) to remove ambiguity. Administrative Ministries have been asked to ensure compliance across all CPSEs immediately.
Is the entire Transport Allowance tax-free for PwD?
As per Income Tax rules, Transport Allowance for PwD employees is exempt up to ₹3,200 per month. The remaining amount is taxable.
Does this rule apply to private sector employees?
No. This DPE order is strictly for Central Public Sector Enterprises (CPSEs) following the IDA pay pattern.
What if I live in the office campus?
Divyangjan employees are eligible for Double TA even if they reside within the office campus, unlike normal employees who might face deductions.
हिंदी सारांश
DPE ने 02 फरवरी 2026 को नया आदेश जारी किया है। इसके अनुसार, CPSE में काम करने वाले दिव्यांग कर्मचारियों (Divyangjan) को मिलने वाला ‘डबल ट्रांसपोर्ट अलाउंस’ 50% या 35% की पर्क्स सीलिंग (Perks Ceiling) से बाहर रहेगा। यानी, अतिरिक्त अलाउंस को आपकी अन्य सुविधाओं की सीमा में नहीं जोड़ा जाएगा। यह नियम तुरंत प्रभाव से लागू है।
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