1. #1
    Unregistered

    What is the City compensatory allowance? Calculation of this allowance?

    I am working in a private company in Faridabad. Is there any limit for City compensatory allowance for metros & big cities? How the allowance is calculated? Will it be same if I will work in Delhi?

  2. #2
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: What is the City compensatory allowance? Calculation of this allowance?

    Quote Originally Posted by Unregistered View Post
    I am working in a private company in Faridabad. Is there any limit for City compensatory allowance for metros & big cities? How the allowance is calculated? Will it be same if I will work in Delhi?
    Dear Aspirant,

    City compesatory allowance is paid to the employees in certain cities to compensate the cost of living.The CCA amount varies from city city & it is highest in metropolitian cities.The amount payable to the employees depends upon the grade pay of the employees.It is not calculated on the % of the basic salary.It is common to a particular class of the employee for a particular place.

    Definately,you will get more CCA amount in Delhi than faridabad.

    Thanks & good luck.

    Ashok


  3. #3
    Chittaranjan Array
    Join Date
    Jul 2012
    Posts
    658

    Re: What is the City compensatory allowance? Calculation of this allowance?

    DEAR QUESTIONER...AS YOU ARE AWARE LIVING COST OF INDIVIDUAL IS HIGHER THAN VILLAGE PEOPLE SO THE AUTHORITY OF THE GOVT/NON GOVT CONCERN PAY CITY COMPENSATORY ALLOWANCES TOR THEIR EMPLOYEES TO COMPENSATE EMPLOYEE WHO SERVES IN URBAN AREA.THE PAYMENT OF CCA IS DONE ON THE BASIS OF POPULATION.THOSE WHO LIVE AND SERVES IN A CLASS CITY, THEY LIVE IN MOST POPULATED AREA SO THEY DESERVE TO GET HIGH AS THEIR EXPENCES IS HIGH THAN LESS POPULATED PEOPLE.

    CALCULATION IS DONE ON THE BASIS OF POSTS i.e ,percentage of scale.NOW A DAYS' THIS METHOD OF PAYMENT IS ACTIVE AMONG THE EMPLOYEE.

    THANK YOU,

  4. #4
    sidharth9889 Array
    Join Date
    Nov 2012
    Posts
    199

    Re: What is the City compensatory allowance? Calculation of this allowance?

    city compensatory allowance is given to employees who are compensated if they are posted in big cities..
    The purpose is to compensate the employee due to higher living costs in delhi,mumbai and other metropolitan cities..city compensatory allowance will enable you to bear housing eating costs... Cca upto 900 rupees is not taxable if it crosses the limit then you can be taxed in cca.. The limit for cca depends upon the management... And cca is calculated depending upon the living cost of particular city your posted..

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