No. 121112017-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 18th July, 2017.
OFFICE MEMORANDUM
Subject: Implementation on the recommendations of 7th Central Pay Commission – Grant of Island Special Duty Allowance to the Central Government employees posted in the Andaman & Nicobar Group of islands and Islands of Union Territory of Lakshadweep,
Consequent upon the acceptance of the recommendations of Seventh Central Pay Commission by the Government, the President, in Supersession of all existing orders issued on the subject from time to time, is pleased to decide that Central Government employees posted in the Andaman & Nicobar (A&N) Group of islands and Islands of Union Territory of Lakshadweep, shall be paid Island Special Duty Allowance at the following rates:-
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Place where posted
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 Rate per month (Rs)
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(i)Areas within the distance of 8 Kms. of Municipal limits of Capital Towns. (Port Blair in A&N Islands, Kavaratti and Agatti in Lakshadweep)
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10% of Basic Pay
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(ii) Difficult Areas (North and Middle Andaman, South Andaman excluding Port Blair in A&N Islands, all Islands in Lakshadweep except Kavarati, Agatti and Minicoy)
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16% of Basic Pay
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(iii) More Difficult Areas (Little Andaman, Nicobar group of Islands, Narcondam Islands, East Islands in A & NIslands, Minicoy in Lakshadweep)
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20% of Basic Pay
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2. The term ‘Basic Pay in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix but does not include any other type of pay like Special Pay, etc.
3. Island Special Duty Allowance shall not be admissible during the periods of leaves training/tour etc. beyond full calendar month (s), in case, the employee is outside the Andaman & Nicobar Group of islands and Islands of Union Territory of Lakshadweep. The allowance shall not be admissible during suspension and joining time,
4. Island Special Duty Allowance shall be admissible in addition to Hard Area Allowance, where admissible. In places where more than one Special Compensatory Allowances are admissible, the Central Government employees posted in such stations will have the option to choose the allowance which benefits them the most, i.e., Hard Area Allowance or one of the Special Compensatory Allowances subsumed under Tough Location Allowance Category-l, land III.
5. The Orders shall take effect from 1st July, 2017.
6, These Orders shall also apply to the civilian employees paid from the Defence Services Estimates and the
expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces
personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively,
7. In so far as the employees working In the Indian Audit and Accounts Department are concerned, these Orders are issued with the concurrence of the Comptroller and Auditor General of India.
Hindi version is attached.
(Annie George Mathew)
Joint Secretary to the Government of India
Source: http://finmin.nic.in/