Section 8 in Life Insurance Corporation of India Class III and Class IV Employees (Revision of Terms and Conditions of Service) Rules, 1985
8. Dearness Allowances.
- [(1) The scale of Dearness Allowance of Class III and Class IV employees shall be determined as under:-(a)Index : All India Average Consumer Price Index Number for Industrial Workers.(b)Base : Index No.4708 in the series 1960=100.(c)Rate : For every four points in the quarterly average of the All India Consumer Price Index above 4708 points, a Class III or a Class IV employee shall be paid dearness allowance at the rate of 0.10 % of Pay.Explanation. - For the purpose of this clause "Pay" means -(i)the basic pay;(ii)additions to basic pay referred to in rule 7;(iii)special allowance referred to in sub-rule (2)(a) of rule 6;(iv)Graduation Allowance payable to the employees in the scale of pay of Assistants and Stenographers as provided in rule 19A; and(v)special allowance referred to in rule 2 or rule 4 of the Life Insurance Corporation of India Class-III Employees (Special Allowance for Passing Examination) Rules, 1988.](2)[] [As amended vide notification dated 05.09.2005] There shall be an upward revision of the dearness allowance payable for every four points rise in the quarterly average (hereinafter referred to as the "current average figure") of the All India Consumer Price Index above [4708 points in the sequence of 4708-4712-4716-4720] [Substituted words '2944 points in the sequence of 2944-2948-2952-2956' by Notification No. G.S.R. 30 (E), dated 14.1.2016 (w.e.f. 11.4.1985).] and so on, and there shall be downward revision of the dearness allowance payable if the current average figure falls below the index figure in the above sequence with reference to which the dearness allowance has been paid for the last preceding quarter. On the downward revision, the dearness allowance payable shall correspond to the current average figure if such current average figure is a figure in the above sequence and the dearness allowance payable shall correspond to the figure in the above sequence next preceding the current average figure if such current average figure is not a figure in the sequence. For this purpose, quarter shall mean a period of three months ending on the last day of March, June, September or December. The final index figures as published in the Indian Labour Journal or the Gazette of India, whichever publication is available earlier, shall be the index figure which shall be taken for the purpose of calculation of dearness allowance.(3)For the purpose of calculating dearness allowance for a particular month, the quarterly average for the last quarter for which the final index figures are available on the 15th day of that month shall be taken. Actual payment of this revised dearness allowance shall be made in the month following that in which the relevant index figures are available.
