CHAPTER VIII
DEARNESS ALLOWANCE
801. Title.—These rules may be called the "Railway Servants Dearness Allowance Rules".
802. Application.—These rules shall apply to all whole time railway servants including temporary staf
the provision of rule 804 below and shall not apply to those who draw dearness allowance in accordance
orders, e.g. ex. State Railway employees.
803. Definition.—Unless there is anything repugnant in the subject or context, the terms defined belo
the sense here-in-explained. Such of the terms as have not been defined will have the same meaning
to them in the Indian Railway Establishment Codes:—
(i) Pay.—It includes—
(a)
Pay as defined
in rule 103 (35) R-I
(b) Pension and/or Pensionary equivalent or other forms of retirement benefits subject to the provision
below, if any, drawn by re-employed pensioners.
Note: 1, No portion of running allowance will be treated as pay for the grant of Dearness Allowance. Ho
case of such of the staff who have retained pre-authorized scales, the pay shall include running allowan
during the month subject to a maximum of 75% of pay.
2. In the case of retired Railway servants, non-Govt. servants, employees of Quasi-Govt. bodies, the de
allowance during the period of their reemployment on Railways, shall be granted on the pay fixed on re
plus the gross amount of pension and/or pensionary equivalent benefits, provided that in either case th
not exceed the maximum of the scale of the post in which the person is reemployed.
In the case of retired Military Pensioners, whose pay on re-employment in a railway post is fixed withou
account the military pension, Dearness Allowance shall be granted on the basis of the pay of the post on
In cases where a part of the Pension is taken into account for the purpose of the fixation of pay on reem
that part of the pension subject to the limits laid down above will be treated as pay.
For this purpose, the amount of pension will be the amount originally sanctioned (i.e. before commutati
the amount of pension, if any, held in abeyance as a condition of reemployment.
3. The compensatory (construction or survey) allowance granted to staff employed on loco building
projects, surveys and construction works vide rule 427 of the Indian Railway Establishment Code, Vo
not be included in 'pay' for the purpose of calculating dearness allowance.
4.The emoluments received from foreign Government in the shape of pay, leave salary or pension, will
into account for determining the eligibility to dearness allowance.
(ii) Whole-time railway servant includes temporary staff, staff paid from contingencies, piece-workers, w
and apprentices drawing stipends, but excludes an employee whose remuneration is fixed specially with
market conditions and not at a rate already sanctioned for his class.
Note.—The apprentices recruited under the apprentice Act, 1961 and Apprentice Rules, 1962 are not el
dearness allowance under these rules.
804. Scales of allowance
A. For Railway servants who are drawing pay in the revised scales of pay (effective from 1-1-86) :
(i) The All India Average Consumer Price Index numbers for Industrial Workers (General) Base 1960—1
used for grant of compensation to employees for price rise and such compensation would be paid from 1
with salary for March.
(ii) The compensation may be paid for the price rise above the 12 months index average of 608 (Base 1
which the pay scales are related.
(iii) Employees drawing basic pay up to Rs. 3500/- is allowed 100% neutralization in the
compensation
(iv) The compensation is to be shown as a distinct element of remuneration.
(i) Amount of Dearness allowance admissible on 30-6-1959.
Pay
Dearness allowance per month
Rs.
Rs.
Upto 50
45
Exceeding 50 but not exceeding 100
55
Exceeding 100 but not exceeding 150
60
Exceeding 150 but not exceeding 200
65
Exceeding 200 but not exceeding 300
70
Exceeding 300 but not exceeding 500
70
Exceeding 500 but not exceeding 750
85
Exceeding 750 but not exceeding 1000
100
Above
Amount by which Pay falls Short of Rs. 11
(ii) Additional Dearness Allowance sanctioned after 1.7.59.
Pay
Additional Dearness Allowance with effect fro
Rs.
Below 60
37
60 and above but upto 100
60
101 and above but below 160
70
160 and above but below 245
90
245 and above but below 330
110
330 and above but below 900
120
900 and above but below 2250
100
2250 and above
Amount by which the pay falls short of 2350
805. Allowance to contract officers.—Dearness allowance may be granted to officers engaged on co
specified periods who may be otherwise eligible for it irrespective of whether there is a provision
contract for the grant to them of any concession or allowance of a general nature which may be
officers of corresponding status, in the regular service and subject to the condition that they have n
been allowed in the fixation of their pay an element of compensation to meet the increase in the cost o
806. Allowance to officers on adhoc rates of pay :- The dearness allowance will be admissible on
officers on adhoc rates of pay whose pay was fixed without taking into account any allowance draw
prior to their appointment on the ad hoc rates of pay, as compensation, for the high cost of
807. Allowance to military officers.—Military officers in civil employment drawing civilian rates of p
eligible for the allowance under the rules in this chapter while Military officers drawing Military rates o
allowance will be governed by the rules or orders on the subject applicable to the personnel of the Arme
808. Allowance on varying rates of pay.—The admissibility and the amount of allowance to be draw
servants drawing varying rates of pay during the course of a month will be determined by the emolume
during each particular broken period of a month.
809. Allowance on joining and leaving service.—In the case of a railway servant joining or leaving
course of a month, the allowance will be determined with reference to the monthly rate of pay and will b
proportionate to the actual days of employment in the month.
810. Allowance during Foreign service.—A railway servant in foreign service may draw dearness al
the foreign employer on the basis of foreign service pay, if the foreign employer is willing to bear the
provided that the rates of, as well as, the monetary limits (including marginal adjustments) for the eligi
allowance are not higher than those sanctioned for railway servants.
811. Drawal of allowance during deputation out of India.—A railway servant drawing pay not exce
prescribed limits while on deputation out of India will, during the first six months of his stay on deputati
country draw D.A. at the rate at which he would have drawn it, had he not proceeded on deputation a
The allowance will not be admissible to railway servants posted ex-India to specified posts. Also Dearne
or Dearness Pay is not. admissible in conjunction with foreign allowance.
812. Drawal of allowance during suspension.—In addition to subsistence allowance, a railway serva
suspension shall be entitled to dearness allowance appropriate to the actual subsistence allowance adm
time to time.
813. Drawal of allowance during leave
and joining time :—
(a) During leave in India—Railway servant who proceeds on leave with leave salary will draw Dearn
Allowance, based on the leave salary actually drawn both in respect of the monetary limits within whic
allowance is admissible and for the purpose of calculation of the amount of allowance admissible.
(b) During Leave ex-India—The allowance shall be admissible to railway servants during an
leave outside India on average or half average pay, other than leave preparatory to retirement. The allo
based on leave salary actually drawn at the rates current from time to time.
Note : 1—Leave salary shall comprise of only the following elements of pay which are taken into accoun
grant of dearness allowance during duty—
(a) Basic pay, special pay and personal pay.
(b) Gross amount of pension and/or pensionary equivalent of other retirement benefits in case of re-e
railway servants.
(c) Average Running allowance limited to a maximum of 75% of pay in the case of those who are drawi
authorized scales of pay. No portion of running allowance shall be taken into account in the case of thos
drawing pay in authorized scales of pay.
2—For the purpose of computation of leave salary in the case of those drawing pay in pre authorized sc
the average pay, half average pay etc. will be calculated excluding the dearness pay, and the Dearness
should be determined in the usual manner.
(c) During Joining time.—In the case of joining time granted under rule 1101-R-I the railway servant
dearness allowance based on pay or leave salary admissible for the joining time period as per rule 1113
814. Allowance during study leave.—Dearness allowance is admissible to railway servants based on
sanctioned during study leave whether in India or abroad.
815. Drawing of allowance during unpaid holidays. —During unpaid holidays, workshop
for the allowance at the full rate applicable to them.
staff will
816. Dearness allowance to re-employed persons whose re-employment runs concurrently
preparatory to retirement.—If a railway servant while on leave preparatory to retirement avails hims
leave concurrently with his new appointment in the Railway he will be granted dearness allowance in re
new appointment based only on the pay of such appointment. The allowance will neither be admissible o
salary, nor will the leave salary be taken into account in calculating the allowance.
817. Liability of the allowance to income tax.—The allowance is liable to income-tax under Section
Indian- Income-tax Act of 1922. The deduction shall be made at source as in the case of salaries.
818. Classification of the allowance.—The allowance shall be classified as compensatory allowance.
819. Dearness allowance during leave preparatory to retirement to Nationals of Nepal and Bh
rail-way servant who is a Nepalese, and Bhutanese National shall be eligible to dearness allowance d
preparatory to retirement spent by him in Nepal and Bhutan respectively in the same way as it is allowe
Railway servants of Indian Nationality during leave preparatory to retirement spent by them in India.
------------------------*----------------------------