Dearness Allowance: RBE No.131/2016 – Rates effective from 01.07.2016

No.PC-VII/2016/1/7/2/1, dated 11.11.2016

S. No.9/PC-VII

Sub: Recommendations of the Seventh Central Pay Commission – Decisions of Government relating to grant of Dearness Allowance to Railway Employees – Rates effective from 01.07.2016.

1.     The undersigned is directed to say that consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission relating to Dearness Allowance, the President is pleased to decide that the Dearness Allowance (DA) to all categories of Railway Employees shall be admissible at the rate of 2 percent of basic pay per month, w.e.f. 01.07.2016.

2.     The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016.

3.     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.

4.     The Government vide Resolution No.1-2/2016-IC, dated 25.07.2016 has decided that till a final decision on Allowances is taken based on the recommendations of the Committee constituted under the Charimanship of Finance Secretary & Secretary (Expenditure), all Allowances will continue to be paid at existing rate.

5.     The Dearness Allowance will continue to be distinct element of remuneration and will not be treated as pay within the ambit of Rule 1303 (FR 9(21)), Indian Railway Establishment Code, Volume-II (Sixth Edition -1987) – Second Reprint 2005.

6.     The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

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

8.     Hindi version will follow.

Download Railway Board Circular RBE No.131/2016

Forward reference ⇒ RBE No.150/2016, RBE No.30/2017,