According to Pension rule 50.A, the pensioners and the family pensioners are granted Dearness Allowance against the price rise. During the reemployment under Central or State Government or Government undertaking or Autonomous body or Local Body, they are not eligible to draw D.A., in 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. (G.O. 902 Fin 26.11.1992, 795 Fin 12.10.1995,191 Fin 16.03.1996, letter 87769 /pen/ 95-11 fin 23.2.1998).
Prior to 1972 there was no element of D.A. on Pension. 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 01.06.1961and 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. The different rates at different points of time D.A. are given in Annexure on D.A. Tables.