Dearness Allowance to Railway Servants on Sixth Central Pay Commission Recommendations from Jan 2006

Railway Board Letter No
PC-VI/2008/I/7/2/1 dated 09.09.2008
Circular Subject
Recommendations of the Sixth Central Pay Commission-Decision of Government relating to grant of Dearness Allowance to Railway Servants- Revised rates effective from 01.01.2006, 01.07.2006, 01.01.2007, 01.07.2007, 01.01.2008 and 01.07.2008

            Consequent upon the decisions taken by the Government on the recommendations of the Sixth Central Pay Commission relating to Dearness Allowance, the President is pleased to decide that the Dearness Allowance admissible to all categories of Railway employees shall be admissible from the dates mentioned below at the following rates:


Dates from which payable

Rate of Dearness Allowance per mensem

From 01.012006

No Dearness Allowance

From 01.07.2006

2% of basic pay + NPA, where applicable

From 01.012007

6% of basic pay + NPA, where applicable

From 01.07.2007

9% of basic pay + NPA, where applicable

From 01.012008

12% of basic pay + NPA, where applicable

From 01.07.2008

16% of basic pay + NPA, where applicable


2.         The payment of Dearness Allowance under these orders from the dates indicated above shall be made after adjusting the installments of Dearness Allowance already sanctioned and paid to Railway employees w.e.f. 01.01.2006, 01.07.2006, 01.01.2007, 01.07.2007, 01.01.2008 vide this Ministry’s letters No. PC-V/97/I/7/14 dated 05.04.2006, 12.09.2006, 22.3.2007, 13.09.2007 and 19.03.2008.


3.         The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed pay band plus the applicable grade pay but does not include any other type of pay like special pay, etc. In the case of Railway servants in the pay scales of HAG+ and apex scale, basic pay means the pay in the prescribed scale.  For the purpose of calculation of dearness allowance, non-practising allowance, where applicable, shall be taken into account as at present. 


4.         The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of Rule 1303 [FR9{21}], Indian Railway Establishment Code, Volume II [Sixth Edition-1987]-Second Reprint 2005.


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


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