Definitions.-- (IREC - 1403)
Unless there is anything repugnant in the subject or context, the terms defined below are used in the sense herein explained.
(i) Pay –It includes--
(b) Pension and/or Pensioner equivalent of other forms of retirement benefits subject to the provision in Note 2 below, if any, drawn by re-employed pensioners.
NOTE 1.--30% of the basic pay of running staff will be treated as pay representing the pay element in the Running Allowance. From 1-8-1981, Dearness Allowance, and Additional Dearness Allowance at the appropriate rates as sanctioned by the government from time to time shall be paid on the basic pay plus the pay element of the Running Allowance viz. 30% of the basic pay.
(Ministry of Railways letter No. E(P & A)II-80/RS-10 dated 17-7-1981.)
NOTE 2.--In the case of retired Railway servants, non-Govt. servants, employees of Quasi-Government bodies, the dearness allowance during the period of their re-employment on Railways, shall be granted on the pay fixed on re-employment, plus the gross amount of pension and/or pensionary equivalent of other forms of retirement benefits, provided that in either case the total does not exceed the maximum of the scale of the post in which the person is re-employed.
In the case of retired Military Pensioners, whose pay on re-employment in a railway post is fixed without taking into account the military pension, Dearness Allowance shall be granted on the basis of the pay of the post only.
In cases where a part of the Pension is taken into account for the purpose of the fixation of pay on re-employment, that part of the pension subject to the limits laid down above will be treated as pay.
For this purpose, the amount of pension will be the amount originally sanctioned (i.e. before commutation, if any) less the amount of pension, if any, held in abeyance as a condition of re-employment.
NOTE 3.--The compensatory (construction or survey) allowance granted to staff employed on loco building works surveys and construction works, vide rule 1423 shall not be included in ‘Pay’ for the purpose of calculating dearness allowance.
NOTE 4.--(i) The emoluments received from foreign Government in the shape of pay, leave salary or pension will not be taken into account for determining the eligibility to dearness allowance.
(ii) Dearness Allowance is in the nature of compensation for established increase in the cost of living and shall be comprised of Dearness Allowance, Additional Dearness Allowance and Dearness Pay and such other elements as the government may from time to time decide. It shall be classified as a Compensatory Allowance.
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