Hello Pragati
Dearness Allowance Means: 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.
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.
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:
01.04.1972 - Rs.5
01.04.1973 - Rs.10
01.10.1973 - Rs.15
01.04.1974 - Rs.20
01.02.1975 - Rs.28
01.02.1976 - Rs.32
01.04.1977 - 10%, subject to maximum of Rs.15
15.09.1977 - Rs.10 for those retired prior to 01.06.1961, Rs.5 after 01.06.1961
01.04.1978 - 5% increase, minimum Rs.10, maximum Rs.25
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.
Regards
R D