RBE No. 77/2008: Dearness Allowance – Merger of
No.E(P&A)II-2006/RS-28, dated 02.07.2008
Sub: Merger of Dearness Allowance equal to 50% of basic pay with the basic pay w.e.f. 01.04.2004.
1. One of the zonal railways have sought clarification whether Dearness Pay is to be reckoned for the purpose of fixation of pay of the running staff in stationary posts.
2. The matter has been examined and it is advised that the governing principle for reckoning Dearness Pay for various purposes is contained in Para 2 of this office letter No.PC-V/2004/A/DA/1, dated 11.03.2004 (RBE No. 57/2004) which stipulates that Dearness Pay would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to GPF, Licence Fee, monthly contribution for CGHS, various advances, etc. As these instructions do not provide for reckoning of Dearness Pay for the purpose of fixation of pay, Board have decided that Para 2 of this office letter of even number dated 24.04.2007 (RBE No. 67/2007) may be substituted to read as under:-
“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 w.e.f. 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), (d) 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+DP+30% of BP)) |
|
HRA |
Rs.2925 (30% of (BP+DP+30% of BP)) |
|
Leave Salary (1 day) |
Rs.419 ((BP+DP+DA+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. 77/2008
Forward reference ⇒ RBE No.