In what comes as a good news in the New Year for the Central Government employees, the Indian government has decided to do away with the cap on Composite Transfer Grant (CTG) in cases where the retiring worker settles at the last station of duty or at a place not more than 20 km away from it. 

Till now, one-third of CTG was admissible if the employee wished to settle down at the last station of duty or at a station not more than 20 km from the last station of duty.

The Government has now decided to do away with the condition of 20 km from the last station of duty. However, to claim the grant, an actual change of residence must be involved. So, as per the modified rule, Central Government Employees can get full CTG (i.e. 80% of the last month’s basic pay) to settle down at the last station of duty or at any place other than the last station of duty post-retirement.

100% of the last month’s basic pay would be paid in case of settlement to and from the island territories of Andaman & Nicobar and Lakshadweep.

“…it has been decided that for the purpose of Composite Transfer Grant in r/o Central Government ernployee 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 an Office Memorandum dated January 6, 2022.

“To settle down at the last station of duty or other than last station of duty after retirement, full CTG would be admissible i.e at the rate of 80% of the last month’s basic pay,” it added.

The O.M. further said that in case of settlement to and from the island territories of Andaman & Nicobar and Lakshadweep, CTG shall be paid at the rate of lOO% of last month’s Basic Pay.

How to claim CTG
The Central Government Employee will have to submit a Self declaration Certificate regarding change of residence in prescribed format to make the CTG claim.