This allowance is paid to employees who are posted in big cities. The purpose is to compensate the high cost of living in cities like Delhi, Mumbai etc.

1. City Compensatory Allowance
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. City Compensatory Allowance
• This allowance is paid to
employees who are posted
in big cities. The purpose is
to compensate the high cost
of living in cities like Delhi,
Mumbai etc.

4. City Compensatory Allowance
• The CCA amount varies
from city & it is highest in
metropolitan cities. The
amount payable to the
employees depends upon
the grade pay of the
employees.

5. City Compensatory Allowance
• It is not calculated on
the % of the basic salary.
It is common to a
particular class of the
employee for a
particular place.