Dearness Allowance

  • 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.