Department of Expenditure (Allowances)
Hidden Allowances 2026
Part 2: Reimbursements, Advances & Claims
Hidden Central Govt Allowances 2026: Claims, Advances & Reimbursements Guide (Part 2)
- Topic: Non-Salary Perks
- Relocation: 80% CTG
- Advances: HBA (₹25 Lakh), Computer (₹50k)
- Reimbursements: News, Bag, Internet
Overview: Beyond the Basic Pay
While Part 1 covered the standard salary, Part 2 of our “Benefits Handbook 2026” dives into the allowances that often go unclaimed because employees are unaware of them. From interest-free advances to reimbursement for your daily newspaper, these perks add significant value to your service.
1. Transfer & Relocation Benefits
When you are transferred from one station to another, the government covers nearly the entire cost.
- Composite Transfer Grant (CTG): You get 80% of your Last Basic Pay as a lump sum grant if the transfer is beyond 20km. (No bills required).
- Bag & Baggage: Reimbursement for transporting household goods by truck/train (Limits vary by Pay Level).
- Car Transportation: Cost of transporting your personal vehicle.
2. Government Advances (Loans)
Cheap or interest-free loans provided directly by the department.
| Advance Name | Limit | Interest |
|---|---|---|
| House Building Advance (HBA) | Up to ₹25 Lakhs | Simple Interest (Revised Annually) |
| Computer Advance | ₹50,000 | Subject to conditions (Often low interest) |
| LTC Advance | 90% of estimated fare | Nil (Must submit bill in 10 days) |
3. Professional Reimbursements
Allowances granted to maintain office efficiency and status.
- Newspaper & Periodicals: Monthly allowance (ranging from ₹500 to ₹1200) for officers to keep updated.
- Briefcase/Office Bag: Reimbursement once every 3 years (Amount depends on Level, e.g., ₹3,000 to ₹10,000).
- Mobile Handset: Granted once every 3 years to officers of Level 6 and above (Amount ₹15,000+).
- Telephone/Broadband: Reimbursement of residential internet/landline bills for eligible officers.
4. Specialized & Duty Allowances
- Night Duty Allowance (NDA): For staff performing duty between 22:00 and 06:00 hrs. Ceiling calculation applies.
- Dress/Uniform Allowance: Annual grant (e.g., ₹5,000 for nurses, ₹10,000 for police) credited in July.
- Risk & Hardship Allowance: For tough postings (Siachen, Naxal areas). Rates vary from R1H1 (High) to R3H3 (Low).
- Deputation Allowance: 5% of Basic Pay (Same station) or 10% (Outstation) for serving in other departments.
- Cycle Allowance: For postmen/MTS using own cycle for duty.
- Child Care (Disabled Women): Special allowance of ₹3,000/month per child for women employees with disabilities.
5. Banking Benefits (Salary Package)
Not a government rule, but a negotiated benefit with banks (SBI/PNB/BoB) for holding your “Govt Salary Account”.
- Personal Accident Insurance: Free cover up to ₹1.5 Crore (Air) / ₹40 Lakh (Accident).
- Air Ambulance: Coverage in case of critical emergencies (Bank specific).
- Higher Education Cover: Additional sum for child’s education in case of account holder’s accidental death.
How to Claim (Draft HBA Application)
“To,
The Head of Office,
[Department Name].Subject: Application for Grant of House Building Advance (HBA).
Sir,
I, [Name], Designation [Post], wish to apply for HBA for the construction of a new house on my plot at [Address].
1. Estimated Cost: ₹40 Lakhs.
2. Advance Required: ₹25 Lakhs (Max admissible).
3. Repayment Capacity: I agree to monthly deductions from my salary over 20 years.Enclosed are the land documents and approved map plan. Kindly sanction the advance.
Yours faithfully,
[Your Name]”
Frequently Asked Questions
Is the Newspaper allowance taxable?
No. Reimbursement for newspapers and periodicals is exempt from tax provided it is used for official purposes (updating knowledge). However, under the new tax regime, exemptions are removed, so check with your DDO.
Can I claim Computer Advance multiple times?
Computer Advance can be granted up to 5 times in your entire service career, with a gap of at least 3 years between two advances.