How deputation allowance works
When a Central Government employee is sent on deputation to another department, ministry, autonomous body or PSU, they continue to draw their parent-cadre pay structure (basic + DA + HRA + TA + other allowances per parent cadre) plus a deputation duty allowance as compensation for the temporary nature of the assignment.
The DOPT rule book (OM No. 6/8/2009-Estt.(Pay-II) and revisions issued post 7th CPC) gives the framework:
| Deputation type | Rate | Monthly cap |
|---|---|---|
| Within same station (city / UA) | 5% of basic pay | ₹4,500 |
| Outside same station | 10% of basic pay | ₹9,000 |
The cap means that beyond a basic pay of ₹90,000, the same-station rate stays at ₹4,500 (the 5% would have given more), and beyond ₹90,000 basic, the outside-station rate stays at ₹9,000 (the 10% would have given more). For mid-grade officers (Levels 11–13), the rate stays below the cap; for senior officers (Levels 13A and above) the cap applies.
What it’s not
- It’s not counted for pension, NPS, gratuity or DA computation. Only basic pay and DA on basic count for those.
- It’s not the borrowing organisation’s pay scale. On deputation you continue with parent-cadre pay; the allowance is the only adjustment.
- It’s not tax-free. The full amount is taxable salary income.
- It’s not the same as the Special Allowance / Posting Allowance / Hardship Allowance some PSUs and autonomous bodies pay, which are governed by their own service rules.
FAQ
What is deputation (duty) allowance?
When a Central Government employee is appointed temporarily on deputation to another organisation (cadre, department or PSU), they continue to draw their parent-cadre pay scale and receive an additional deputation (duty) allowance as compensation for the disruption. The rate depends on whether the deputation is within the same station/state or outside.
What rates does DOPT specify?
Per DOPT OM (No. 6/8/2009-Estt.(Pay-II) and subsequent revisions), the rates are: 5% of basic pay when the deputation is within the same station, capped at ₹4,500 per month; and 10% of basic pay when outside the same station, capped at ₹9,000 per month. “Same station” means the same urban agglomeration / city limits.
Is it the same as Central Deputation Allowance?
Different but related. The 10% allowance applies to officers on Central Staffing Scheme (CSS) deputation under DOPT, capped at ₹9,000/month. State deputation, autonomous body deputation, and PSU deputation use the same DOPT framework with the 5% / 10% split.
Does it count for pension / NPS / DA?
Deputation allowance is paid in addition to basic pay but does not count as pay for pension, NPS contribution, gratuity, or DA. It’s also not counted for HRA / TA computations — only basic pay (and DA on basic) drives those.
Is it taxable?
Yes, deputation allowance is fully taxable as part of salary income. There’s no Section 10 exemption specific to deputation allowance. Reimbursements for actual expenses incurred (e.g., joining travel) are exempt under separate provisions.
How long can I be on deputation?
Standard deputation tenure is 3 to 5 years, extendable in some cases. The allowance is paid for the entire tenure; on reversion to parent cadre, the allowance stops.
Are there extra allowances for foreign deputation?
Foreign deputation has separate compensation (Foreign Allowance) and is not covered by the standard 5%/10% framework. This calculator handles only domestic deputation.