Dearness allowance

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In India, Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc. ( G.O. 788 Fin 13.05.1986, 134179 / 91-1 Fin 27.12.1991, 140549/92-4 Fin 02.07.1993 )

(814 Fin 30.09.1994) 
 
 
 
 
 


1 
Name 
 
 
 
A B C 
 
 
 


2 
Designation of post from which retired 
X Y Z 
 
 
 


3 
Department/Office last served 
P Q R 
 
 
 


4 
Date of Birth 
 
 
20.09.1942 
 
 


5 
Date of Commencement of service 
10.04.1965 
 
 


  
Date of Superannuation/ retirements 
30.09.2000 
 
 


6 
Rules under which pensionary benefits 
T.N. Pension Rules 
 


 
were settled 
 
 
 
 
 
 


7 
Qualifying Service (See para 3.9 Part III) 
30.09.2000 
 
 


 
 
 
 
              -- 
10.04.1965 
D   M  Y 
 


 
 
 
 
 
 
 
20.05.35 
 


 
1. Addition to Qualifying Service 
 
Nil 
 


 
2. Period of Service not Qualifying for pension 
 
 


 
    With reasons not Qualifying 
 
Nil 
 


 
     
 
20.05.35 
 


 
 
 
 
 
 
 



8 
Emoluments drawn during the last 10 
Scale of pay Rs.4500--125--7000 
 


 
months and Scale of pay preceding 
01.07.1999   Rs.5875+SplPay50+PP50 
 


 
retirement/superannuation(Pay, Special 
01.07.2000   Rs.6000+   "       50+  "  50 
 


 
pay, D.P.Allowance,Personal pay, D .Pay, 
 
 
 


 
Interim relief) 
 
 
 
 
 
 


9 
Computation of Average emoluments on 
   5975 X7     =  41825 
 


 
which pension is fixed 
 
   6100 X3     =  18300 
 


 
 
 
 
 
 
      60125 
 


 
 
 
 
 
Average Emoluments  Rs.6012.50 
 


 
 
 
 
 
Pay Last drawn            Rs.6100 
 


 
Pay last drawn being advantageous it has to be adopted             Rs.6100 
 


10 i) 
Total amount of Pension 
 
6100 X 50 / 100  =       Rs.3050 
 


      ii) 
Family Pension Admissible
 
 
 


  a) 
Ordinary rate of Family Pension: Pay last drawn X 30% subject to Min.1275 Max 6570 
6100 X 30%       =        Rs.1830 
 


    b) 
Enhanced rate of Family Pension 50% of pay last drawn and not exceeding pension admissible on date of retirement Min.1275 Max.6570 
  Nil 
 


11 
Details of Commutation of Pension 
 
 
 


    i) 
Percentage amount of monthly pension commuted           40% 
 
 


  ii) 
Amount of Commuted value of pension (Age Next birthday 59 years 10.46 Yrs purchase) 
{3050 X 40 / 100} X 10.46 X 12 = Rs.1,53,135 
 


12 
Computation of D.C.R.Gratuity 
Actual Service 35 years 
 


 
(Emoluments=PAY+D.A)  5 months restricted to 
 


 

 
33 years for Gratuity Pay 6100, 
 


 
 
 
 
 
D.A.@41%(as on 1.7.2000) 2501=8601

8601 X 16 1/2 = Rs.1,41,917

13 
Amount of D.C.R.Gratuity 
 
Rs.1,41,917 
 
 


14 
Remarks

Pensioners and the family pensioners are granted D.A. against the price rise. During the reemployment under Central or State Government, Government undertaking, Autonomous body or Local Body, they are not eligible to draw D.A., in which case D.A. is allowed in addition to fixed pay or time scale. In other cases of reemployment D.A. is allowed subject to the limit of emoluments last drawn. D.A. is not allowed while the pensioner stays abroad and also in case of employees absorbed in public undertaking or bodies. If the pensioner stayed abroad without reemployment, he shall be eligible to draw D.A. on pension.

[edit] Rates of Dearness Allowance

Prior to 1972, there was no element of D.A. on pensions. From 01.04.1972 there was a flat rate of D.A. to all the pensioners:

From 01.04.1979 to 30.09.1984 there were 28 installments of D.A. paid to the pensioners at certain fixed rates for 13 slabs of pension amounts. From 01.10.1984 to date, the pensioners are paid D.A. at certain percentage of basic pension.

Dearness Allowance is calculated on the original pension without commutation.

Dearness Allowance is granted at certain percentage of basic pension and it is revised every 6 months from 01.07.1986 onwards based on cost of living index.