Government of India, Ministry of Finance, department of expenditure vide their letter No. 105/1/204-IC dated 01.03.2004 as conveyed sanction for merger of 50% of dearness allowance/dearness relief with pay / pension to Central Government employees w.e.f 01.04.2004. Various PCsDA / CsDA have raised points of doubts on the following subjects.
1. whether dearness pay is to be treated as basic pay for the purpose of payment of non practicing allowance (NPA)?
2. Whether dearness pay is to be considered for ceiling limit of Rs. 29500/- as per Govt. of India decision to below rule 9 of FR. In certain cases basic pay + dearness pay exceeds the limit of Rs. 29500/-. How is NPA to be reglated in such cases?
3. CCA/ Tribal Area allowance / Special compensatory (HILL)/SPL COMPENSATORY (RL) allowance are at present paid based on pay range of basic pay. When dearness pay is added, the pay range gets changed. In such an event whether these allowances can be paid based on the new slabs arrived at by adding DP or the existing pay range alone has to be followed pending receipt of ammendment of existing pay range?
Consider that you are working as a Section Officer(A) in the HQrs office, put up an office note bringing out the above issues and seeking a decision on the subject.