Revised Rates of Dearness Allowance to Indian Railway Employees with effect from July 2021
Government of India
Ministry of Railways
PC-VII No.:- 173
RBE No.: 52/2021
File No. PC-VII/2016/1/7/2/1
New Delhi, dated: 20.07.2021
The General Manager/CAOs(R),
All India Railways & Production Units,
(As per mailing list)
Sub:- Revised rates of Dearness Allowance to Indian Railway employees w.e.f. 01.07.2021
The undersigned is directed to refer to this Ministry’s letter No. PC-VII/2016/1/7/2/3 dated 27.04.2020 vide which instalments of Dearness Allowance to Railway employees due from 01.01.2020, 01.07.2020 and 01.01.2021, were frozen and to say that the President is pleased to decide that the Dearness Allowance payable to Indian Railway employees shall be enhanced from the existing rate of 17% to 28% of the Basic Pay with effect from 1st July, 2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 17%.
2. The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be distinct element of remuneration and will not be treated as pay within the ambit of Rule 1303 (FR 9(21)), Indian Railway Establishment Code, Volume-II (Sixth Edition – 1987) – Second Reprint 2005.
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. This issues with the concurrence of Finance Directorate of Ministry of Railways.
(M. K. Gupta)
Executive Director, Pay Commission-II