The Recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.
V. Dearness Allowance:
| Sl. NO | Recommendation of the seventh Central Pay Commission | Decision of the Government |
| 1 | Existing formula and methodology for calculating Dearness Allowance to continue (Para 8.17.37 of the Report) | Accepted. The reference base for calculation of Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on 01.01.2016. |
