RBE No. 67/2007: Dearness Allowance – Merger Equal to 50% of Basic Pay

No.E(P&A)I-2006/RS-28, dated 24.04.2007

Sub: Merger of Dearness Allowance equal to 50% of basic pay with the basic pay w.e.f. 01.04.2004.

1. Some of the Zonal Railways have brought to notice of the Board that clarification contained in this office letter No.E(P&A)-II/2005/RS-28, dated 08.11.2005 (RBE No. 189/2005) has led a confusion regarding calculation of emoluments of Running staff.

2. The matter has been examined in detail by the Board and it is revealed that the instructions contained in letter No.E(P&A)-II/2005/RS-28, dated 08.11.2005 (RBE No. 189/2005) are in conflict with the instructions contained in letter No.PC-V/2004/A/DA/1, dated 11.03.2004 (RBE No. 57/2004). In supersession of the instructions contained in letter dated 08.11.2005 (RBE No. 189/2005) ibid, it is clarified that with effect from 01.04.2004, Dearness Pay, calculated on Basic Pay + 30% thereof shall also be reckoned as pay for the purpose of computation of the specific benefits as mentioned in Rule 25 [excluding (a) and (g) thereof] contained in “The Rules for payment of Running and other Allowances to the Running staff on Railways, 1981”. An illustration is given below:-

Basic Pay (BP)	Rs.5000
Pay element @ 30% of BP	Rs.1500
Dearness Pay (DP)	Rs.3250 (computed on BP + 30% of BP)
Dearness Allowance (DA)	Rs.2828 [29% of BP (BP + DP + 30% of BP)]
HRA	Rs.2925 [30% of (BP + DP + 30% of BP)]
Leave salary (1 day)	Rs.419 [(BP + DP + 30% of BP)/30]

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

Download Railway Board Circular RBE No. 67/2007

Forward reference ⇒ RBE No. 77/2008