Hi Numberuno
In India, specially in the Government sector, the employees are paid at a fixed payscale which needs to be reviewed by "Pay Commission" sitting every 5 years.
Mean while, the employees would get a fixed increament as per the previous "Pay Commission's" recommendation. In this case, to adjust the net salary against the Inflation Rate of the area, the Government gives "Dearness Allawance" [%age of Basic salary] which practically is an increament in their basic salary as everything else is then calculated based on "Basic+DA". i.e. if 20% House Rent on basic is given as allowance, it will then be converted to 20% of "Basic + DA"
The act that has been passed for the purpose is given below...
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THE ALL INDIA SERVICES (DEARNESS ALLOWANCE) RULES, 1972
In exercise of the powers conferred by sub-section (1) of the Section 3 of the All India Services Act, 1951 (61 of 1951), the Central Government after consultation with the Governments of the States concerned, hereby makes the following rules, namely :-
1.Short title and commencement :
These rules may be called the All-India Services (Dearness Allowances) Rules, 1972. They shall come into force on the first day of April, 1972.
2.Definition :
In these rules, unless the context otherwise requires "a member of the Service" means a member of an All-India Service as defined in Section 2 of the All-India Services Act, 1951 (61 of 1951).
3. Regulation of dearness allowance:
Every member of the Service and every officer, whose initial pay is fixed in accordance with sub-rule (5) or sub-rule (6-A) of rule 4 of the Indian Administrative Service (Pay) Rules, 1954 or sub-rule (5) of rule 4 of the Indian Police Service (Pay) Rules, 1954 or sub-rule (6) of rule 4 of the Indian Forest Service (Pay) Rules, 1968, shall be entitled to draw dearness allowance at such rates, and subject to such conditions, as may be specified by the Central Government, from time to time, in respect of the officers of Central Civil Services, Class I.
4.Interpretation :
If any question arises as to the interpretation of these rules, it shall be referred to the Central Government for decision.
(No. 1/13/70-AIS(II), dated the 18th March, 1972).
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1Substituted vide Department of Personnel & A R Notification No. 22/1/74-AIS(II), dt.28thJanuary, 1975.