Finance Commission, Ministry of Finance, Govt. of India

The Finance Commission (Salaries & Allowances) Rules, 1951

The Finance Commission (Salaries & Allowances) Rules, 1951 (issued under Government of India Notification No.10003-811/51 dated the 3rd November, 1951) as amended by the Finance Commission (Salaries & Allowances) Amendment Rules, 1960, 1964, 1968, 1972, 1977, 1983 and 1989 (vide Government of India Notifications No. S.O. 2915 dated the 3rd December, 1960, S.O. No.1788 dated the 20th May, 1964, S.O. No.2349 dated the Ist July, 1964, S.O. No.809 dated the 28th February, 1968, S.O. No.480 (E) dated 11th July, 1972, S.O. No.580(E) dated the 22nd July, 1977, S.O. No.349(E) dated 6.5.1983, S.O. No.779(E) dated 3.10.1989 and S.O. No. 310 (E) dated 24th March, 2003.

In exercise of the powers conferred by Section 7 of the Finance Commission (Miscellaneous provisions) Act, 1951 (XXXII of 1951), the Central Government hereby makes the following files namely :-

1. Short title :
These rules may be called the Finance Commission (Salaries and Allowances) Rules, 1951.

2. Salary and Allowances of the Chairman
(1) A Person appointed to render whole time service as the Chairman of the Commission shall be entitled :-

a) to draw a salary of Rs 3,500/- per mensem, less the pension, if any, including the pensionary equivalent of any other form of retirement benefit drawn by him;

aa) to draw dearness allowance and additional dearness allowances at such rates as are admissible to an employee of the Central Government drawing a pay of Rs 3,500 per mensem.

b) to draw travelling allowance, including daily allowance, for any journey performed by him as Chairman, at such rates as are admissible to a Government servant of the First Grade;

c) to the sue of a fully furnished residence in Delhi, throughout his term of office and for a further period of 15 days immediately thereafter, without payment of any rent for such use, and

d) to no amount by way of any compensatory allowance.

Provided that where any person who had been a judge of the Supreme Court is appointed as the Chairman of the Commission, he shall be entitled :-

(i) to a monthly salary at the same rate as was admissible to him as a judge of the Supreme Court immediately before relinquishing office as such Judge reduced by pension and pension equivalent of other forms of retirement benefits drawn by him:

(ii) (a) in respect of journeys undertaken for assuming charge as Chairman of the Commission, to the actual railway fare not exceeding the fare for the highest class including the air-conditioned class, for self and members of the family from the ordinary place of his residence to New Delhi, plus, the actual cost on transport, by passenger train, at owner’s risk, of one motor car plus actual cost on transport of other personal effects not exceeding the expenditure which would be incurred on the transport of a full wagon of goods and the expenditure incurred on loading and unloading of

(b) in respect of traveling on duty as Chairman of the Commission, to the allowances as are admissible to Judge of the Supreme Court in accordance with rule, 5, excluding item (1) of the third provision to clause(f) thereof, of the Supreme Court Judges (Travelling Allowances) Rules, 1959, as in force for the time being; and

(c ) on relinquishing charge as Chairman of the Commission, to the facilities as are admissible to a judge of the Supreme Court on retirement from service, in accordance with sub-rule (30 of Rule 6 of the Supreme Court Judges (Travelling Allowance) Rules, 1959, as in force for the time being; and

(iii) to the use of a fully furnished residence in lieu Delhi throughout his term of office and for a further period of 15 days immediately thereafter, without payment of any rent for such use;

Provided further/that where any person, other than a person who had been a judge of the Supreme Court, so appointed is given the rank of a Cabinet Minister he shall, in lieu of the salary, allowances and other facilities provided for in the sub-rule, be entitled to such salary, allowances and other facilities as are admissible to a Minster (not being a Deputy Minister) under the Salaries and Allowances of Minister Act, 1952 (58 of 1952) and the rules made thereunder.

(2) A person appointed to render part-time service as the Chairman of the Commission shall draw a daily allowance of Rs 75 per day for the period spent by him on duty as Chairman and he shall further be entitled to draw traveling allowance (but not daily allowance) for journeys performed by him as such Chairman at the rates admissible to a Government servant of the First grade.

Provided that where the person so appointed is a Member of Parliament he shall in lieu of the allowances provided for in this sub-rule, draw a daily allowance for each day spent by him on duty as Chairman of the Commission at the same rate as in admissible to him under Section 3 of the Salaries and Allowances of Members of Parliament act, 1954 (30 of 1954) and he shall further be entitled to draw traveling allowance for any journey performed by him as such Chairman at the same rate as is admissible to him under Section 4 of the said Act and the rules made thereunder.

3. Salaries & Allowances of other Members.

1) A person in service under the Government of India, the Govt. of State or the Reserve Bank of India, appointed to render whole-time or part-time service as a Member of the Commission shall draw such pay and allowances as in Central drawn by him as a Government having regard to the pay and allowances drawn by him as a Government servant on, as the case may be, a servant of the Reserve Bank, may in each case, determine.

2) A person (not being a retired High Court Judge or a Government servant or a servant of the Reserve Bank or a retired Government servant or a retired servant of the Reserve Bank) appointed to render whole time service as a Member of the Commission shall be entitled:-

a) to draw a salary of Rs 3,000/- per mensem;

b) to draw traveling allowance, including daily allowance, for any journey performed by him as a Member of the Commission at such rates as are admissible to a Government servant of the First Grade;

c) to draw compensatory allowance at the rate of Rs 75/- per mensem; and

d) to draw no amount by way of house rent allowance.

A person, being a retired Government servant or a retired servant of the Reserve Bank (other than a retired High Court Judge) appointed to render whole-time service as a Member of the Commission shall be entitled :-

a) to a monthly salary at the same rate as was admissible to him immediately before retirement from service of the Government or, as the case may be, from service of the Government or, as the case may be, from service of the Reserve Bank, reduced by pension and pension equivalent of other forms of retirement benefits drawn by him;

b) to draw traveling allowance, including daily allowance, for any journey performed by him as the Member of the Commission at such rates as are admissible to a Government servant of the first grade;

c) to draw compensatory allowance at the rate of Rs 75/- per mensem; and

d) when not in occupation of a residence provided by the Central Government, to house rent allowance at the same rate and subject to such terms and conditions as are applicable, from time to time, to a serving Government servant of equivalent status.

4. A person being a retired High Court Judge appointed as render whole-time service as a Member of the Commission shall be entitled :-

(a) to draw a salary of Rs 8,000/- per mensem less the pension and the pensionary equivalent of any other form of retirement benefit but excluding pension equivalent of gratuity drawn by him;

(b) to draw dearness allowance at such rates as are admissible to an employee of the Central Government drawing a pay of Rs 6,700 per mensem;

(c) to draw compensatory (City) allowance as admissible to a serving Judge of High Court at the Headquarters station of the Commission;

(d) to draw traveling allowance and daily allowance according to his entitlement on the rates at the time of his re-employment. He shall also be entitled to facility of temporary Government accommodation in Guest Houses Inspection Bangalows run by the Central Government, wherever available on payment of formal rent at out-stations, of the class to which a Government Servant of the highest class is eligible;

(e) to draw traveling allowance in respect of journeys undertaken for assuming charge at Headquarter of Commission from the place of his ordinary residence at a rate admissible to an employee of the Central Government drawing pay of Rs 5,100/- and above per mensem;

(f) to draw traveling allowance in respect of journeys, undertaken on relinquishing of charge as Member of a Commission from the Headquarters of Commission to the place of his ordinary residence at a rate admissible to an employee of the Central Government drawing pay of Rs 5,100/- and above per mensem;

(g) to rent free furnished accommodation or house rent allowance at the rate of 121% of pay in lieu thereof;

(h) to medical treatment and hospital facilities as provided in the Central Government Health Scheme and in place where the Central Government Health Scheme is not available the medical facilities available to a Cabinet Minister under the Salaries and Allowances of Ministers Act 1952 (58 of 1952) and the rules made thereunder;

(i) to all kinds of leave, as admissible to a person re-employed after retirement in accordance with rule 34 of the Central Civil Services (Leave) Rules, 1972;

(j) to avail leave travel concession for self and his family as admissible to re-employed pensioners at the rate admissible to an employee of the Central Government drawing pay of Rs 5100/- and above per mensem; and

(k) conveyance facilities, “as admissible to a serving judge at the time of his re-employment”.

5. A person, not being a Government servant or a servant of the Reserve Bank, appointed to render part-time service as a Member of the Commission shall be entitled :-

(a) to draw a daily allowance of :

(i) Rs 60/- per day for the period spent by him on duty as a Member of the Commission at Bombay, Calcutta and Delhi;

(ii) Rs 50/- per day for the period spent by him on such duty elsewhere, and

(b) to draw traveling allowance (but not daily allowance) for any journey performed by him as such a part time Member at such rates as are admissible to a Government Servant of the First Grade;

(c ) provided that where the person so appointed is a Member of Parliament, he shall, in lieu of the allowance provided for in this sub-rule, draw a daily allowance for each day spent by him on duty as a Member of the Commission at the same rate as is admissible to him under Section 3 of the Salaries and allowances of Members of Parliament Act, 1954, (30 of 1954) and he shall further be entitled to draw traveling allowance for any journey performed by him as such Member at the same rate as is admissible to him under Section 4 of the said Act and the rules made thereunder.

6. Where the Central Government provides :-

(a) a Member appointed to render whole time service, with a residence or

(b) a chairman or a Member appointed to render part-time service, with temporary accommodation, in a Government Hostel or such like accommodation, such Member or Chairman shall pay rent for that residence or accommodation as the case may be in accordance with Rule 45-A of the Fundamental Rules.

Leave salary admissible to Chairman

Whether a person, not being a Government servant or of the Reserve Bank, is appointed to render whole-time as the Chairman or any other Member of the Commission and person after such appointment is temporarily incapacitated, by or otherwise from rendering such service, then, he shall be entitled to leave salary at the same rate as when rendering whole-time service, for an aggregate period not exceeding one-eleventh period of whole-time service actually rendered by him as a Chairman or other however, as the case may be.

Special provision as to additional Dearness Allowances :

A person, being a retired Government servant or a retired part of the Reserve Bank, appointed to render whole-time service Chairman or Member of the Commission shall, if the dearness allowance payable to incumbents of the post which he held immediately before such retirement has been increased whether by way of provisional dearness allowance or in any other manner after such engagement, be entitled, in addition to salary in accordance with pre-going provisions of these rules to a sum equal to the or the aggregate of the amounts of such increase, in the manner and to the same extent as if he had been re-employed a post with effect from the date of his appointment as such or Member.”

( SMT. JANAKI KATHPALIA )
JOINT SECRETARY TO THE GOVERNMENT OF INDIA
(F.10(15)-B(S)89)

S.O. 310(E).-In exercise of the powers conferred by section 7 of the Finance Commission (Miscellaneous Provisions) Act, 1951, (XXXIII of 1951 ), the Central Government hereby makes the following rules further to amend the Finance Commission (Salaries and Allowances) Rules, 1951, namely

Notification
New Delhi, the 24th march, 2003

1. Short title and commencement -

(1) These rules may be called the Finance Commission (Salaries and Allowances) Amendment Rules, 2003.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Finance Commission (Salaries and Allawances) Rules, 1951 in rule 3, after sub- rule(b), the following sub-rule shall be inserted, namely :-
.
"(7) If a Member is given the rank of a Minister of State, he may exercise the following
options. either :-

(a) to draw pay (less pension in case of retired officials), dearness allowance and perquisites of a Secretary to the Government of India and status of Minister of State; or
(b ) to draw pay, daily allowance, perquisites and status applicable to a Minister of State (plus pension without dear:ness relief in case of retired officials)"

[F. No. 10(14)-B(S)/2002]
D. SWARUP, Addl. Secy. (Budget)