- The amount of a compensatory allowance shall be so regulated that, on the whole, it is not a source of profit to the recipient. A
- Compensatory (City) Allowance may be granted to a railway servant whose place of duty is situated within the qualifying area of the station for which the allowance has been prescribed.”
- President can discontinue and continue it whenever it is needed.
- At present it is not granted to indian railway employees. It is discontinued with effect from 12/09/2008(after 6th pay commission)
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