- DA is granted to Railway employees to offset inflation and rising cost of living and inflation.
- Basis for DA calculation is All India consumer price index.
- DA revision is done to neutralize inflation 100%.
- Government will sanction DA on the first of January and on the first of July every year if it is due as per the calculation.
- Click here for method of calculation of DA and present rates.
Dearness Pay (For those who retain Vth pay Commission scale)
- With effect from 1.1.2004 50% of DA was convertede to DP and DA was fixed as 11%.
- From that DA and other allowances were calculated based on Pay + DP resulting in financial benefit to employee and a temporary relief to employees who were waiting for next Pay Commission.
- Likewise for pensioners also 50% Dearness Relief was seperated as Dearness Pension from 1.1.2004 and DA was calculated on Pension + DP.
- This is still applicable for those who retain 5 th CPC scales.