Hard Area Allowance
Hard Area Allowance, at the rate of 25 percent of Basic Pay, is granted to Central Government employees on their posting to the Nicobar and Lakshadweep groups of Islands. This is paid in addition to ISDA. There are demands to increase the rate of this allowance.
Analysis and Recommendations
In line with our recommendations on percentage based allowances, Hard Area Allowance should be rationalized by a factor of 0.8 to 20 percent of Basic Pay.