Clarification on increase in certain allowances 25% as a result of enhancement of Dearness Allowance w.e.f 01-01-2011

RBE No.78/2011
PC – VI No.261

Government of India
Ministry of Railways
(Railway Board)

No.E(W)2008/ED-2/4
New Delhi, Dated:01-06-2011

The General Manager (P),
All Indian Railways & PUs.

Sub: Clarification on increase in certain allowances 25% as a result of enhancement of Dearness Allowance w.e.f 01-01-2011.

Please refer to Railway Board’s letter of even number dated 01.10.2008 containing revised policy instructions on Children Education Allowance and Hostel Subsidy admissible to Railway servants based on the recommendations  of Sixth Central Pay Commission as per DOP&Ts OM No.1201l/03/2008-Estt.(Allowance) dated 02.09.2008. Reference is also invited to Railway Board’s letter E(W)2008/ED-2/5 dated 13-10-2008 containing instructions on Special Allowance for child care for women with disabilities and Education Allowance for disabled children as per DOP&T’s OM NO.12011/04/2008-Estt.(Allowance) dated 11.09.2008. As per revised scheme, reimbursement limits on Children Education Allowance and Hostel subsidy would be raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

2. Railway Board vide letter No.PC-VI/2008/1/7/2/1 dated 25-03-2011 has enhanced the Dearness Allowance payable to Railway employees from the existing rate of 45% to 51% with effect from 1st January, 2011.

3. Consequent to aforesaid enhancement in Dearness Allowance to 51%, limits on reimbursement of Children Education Allowance & Hostel Subsidy shall go up by 25% w.e.f. 1st January, 2011. DOP&T vide Office Memorandum No.12011/01/2011-Estt.(Allowance) dated 04-05-2011 (copy enclosed) has issued clarification to this effect that Children Education Allowance and Hostel Subsidy allowance shall be enhanced by 25% as a result of enhancement of Dearness Allowance to 51% from w.e.f. 1st January, 2011. The clarification issued by DOP&T shall apply mutatismutandis in respect of Railway employees.

Please acknowledge receipt.

sd/-
(Debasis Mazumdar)
Joint Director Estt.(Welfare)
Railway Board

Source: AIRF