1. In accordance with the recommendations of VI CPC, the rates of various allowances admissible to different categories of railway staff were revised/doubled. The VI CPC while making recommendations in this regard had also recommended that the rates of these allowances will be increased by 25% every time the Dearness Allowance goes up by 50% Railway Board accordingly issued instructions in respect of Festival Advance vide letters referred to above.
2. Subsequent to enhancement in the rate of Dearness Allowance to 51%, the matter regarding revision in the rate of Festival Advance has been considered by the Board. In order to dispel any doubts that may arise in the Railways, it is reiterated that the rates of Festival Advance shall increase by 25% with Dearness Allowance now having gone up 50% w.e.f 01.01.2011.
3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.
4. There is no change in the other terms and conditions for grant of festival advance.