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 staff subject to the provision of rule 804 below and shall not apply to those who draw dearness allowance in accordance with other orders, e.g. ex. State Railway employees. 

803.   Definition.—Unless there is anything repugnant in the subject or context, the terms defined below are used in the sense here-in-explained.   Such of the terms as have not been defined   will have the same meaning as assigned 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 in Note 2 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. However in. the case of such of the staff who have retained pre-authorized scales, the pay shall include running allowance drawn 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 dearness allowance during the period of their reemployment on Railways, shall be granted on the pay fixed on re-employment, plus the gross amount of pension and/or pensionary equivalent benefits, provided that in either case the total does 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 without taking into account the military pension, Dearness Allowance shall be granted on the basis of the pay of the post only. 

In cases where a part of the Pension is taken into account for the purpose of the fixation of pay on reemployment, 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 commutation if any) less 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   works, projects, surveys and construction works vide rule 427 of the   Indian   Railway Establishment Code, Volume I, shall 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 not be taken into account for determining the eligibility to dearness allowance. 

(ii) Whole-time railway servant includes temporary staff, staff paid from contingencies, piece-workers, workshop staff and apprentices drawing stipends, but excludes an employee whose remuneration is fixed specially with reference to 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 eligible for 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—100) is to be used for grant of compensation to employees for price rise and such compensation would be paid from 1st January with salary for March. 

(ii) The compensation may be paid for the price rise above the 12 months index average of 608 (Base 1960—100) to 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. 1100

 

(ii) Additional Dearness Allowance sanctioned after 1.7.59.

Pay Additional Dearness Allowance with effect from 1.8.86
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 contract for specified periods who may be otherwise   eligible for   it irrespective of whether   there is   a   provision in   the   contract   for the grant   to   them   of   any concession or allowance of a general nature which may be sanctioned for officers of corresponding status, in   the   regular service and subject to the   condition that they have not already been allowed in   the fixation of their pay an element of compensation to meet the increase in the cost of living. 

806.  Allowance to officers on adhoc rates of pay :- The dearness allowance will be admissible   only   to those officers on adhoc rates of pay whose pay was fixed   without   taking   into   account any allowance drawn by them prior to their   appointment   on   the ad hoc   rates   of pay,   as   compensation,   for   the high cost of living. 

807.  Allowance to military  officers.—Military officers in civil employment drawing civilian rates of pay will be eligible for the allowance under   the rules in this chapter while Military officers   drawing Military rates of pay and allowance will be governed by the rules or orders on the subject applicable to the personnel of the Armed Forces. 

808.  Allowance on varying rates of pay.—The admissibility and the amount of allowance to be drawn by railway servants drawing varying rates of pay during the course of a month will be determined by the emoluments drawn 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 service in the course of a month, the allowance will be determined with reference to the monthly rate of pay and will be proportionate to the actual days of employment in the month. 

810.  Allowance during Foreign service.—A railway servant in foreign service may draw dearness allowance from the foreign employer on   the basis of   foreign service pay, if the foreign employer is willing to bear the cost and provided that the rates of, as well as, the monetary limits (including marginal adjustments) for the eligibility for the 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 exceeding the prescribed limits while on deputation out of India will, during the first six months of his stay on deputation in any one country draw D.A. at the rate   at which he would have drawn it, had he not proceeded on deputation and thereafter. 

The allowance will not be admissible to railway servants posted ex-India to specified posts. Also Dearness Allowance or Dearness Pay is not. admissible in conjunction with foreign allowance. 

812. Drawal of allowance during suspension.—In addition to subsistence allowance, a railway servant under suspension shall be entitled to dearness allowance appropriate to the actual subsistence allowance admissible from 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 Dearness Allowance, based on the leave salary actually drawn both in respect of the monetary limits within   which the 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 any period of leave outside India on average or half average pay, other than leave preparatory to retirement. The allowance will be 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 account for the 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-employed railway servants. 

(c) Average Running allowance limited to a maximum of 75% of pay in the case of those who are drawing pay in pre-authorized scales of pay. No portion of running allowance shall be taken into account in the case of those who are 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 scales of pay. the average pay, half average pay etc. will be calculated excluding the dearness pay, and the Dearness Allowance 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 shall draw dearness allowance based on pay or leave salary admissible for the joining time period as per rule 1113-R-I. 

814.  Allowance during study leave.—Dearness allowance is admissible to railway servants based on leave salary sanctioned during study leave whether in India or abroad. 

815.  Drawing of allowance during unpaid holidays. —During unpaid holidays, workshop   staff will   be eligible for the allowance at the full rate applicable to them. 

816.   Dearness allowance  to re-employed persons whose  re-employment runs  concurrently  with  leave preparatory to retirement.—If a railway servant while on leave preparatory to retirement avails himself of such leave concurrently with his new appointment in the Railway he will be granted dearness allowance in respect of his new appointment based only on the pay of such appointment. The allowance will neither be admissible on leave-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 VII of the 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 Bhutan.—A rail-way servant who is a   Nepalese, and   Bhutanese National shall be eligible to dearness allowance during leave preparatory to retirement spent by him in Nepal and Bhutan respectively in the same way as it is allowed to the Railway servants of Indian Nationality during leave preparatory to retirement spent by them in India. 

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