[G.O.Ms. No. 401, Fin. & Plg., (Fin.-Wing. F.R.-I.), Dt. 17-11-1977]
Order : —In view of the instructions issued in the Circular Memo.No. 242587/376/FR.I & L/73-1, Dt. 19-2-1974, the Accountant General, A.P. Hyderabad has raised certain points in his letter second cited, Government of India to whom the matter was referred, have clarified that pay for the purpose of grant of various allowances like House Rent Allowance, City Compensatory Allowance, Dearness Allowance to Central Government employees means pay as defined in F.R. 9(21)(a), that additional pay sanctioned under F.R. 49 forms part of pay under F.R. 9(21)(a) ; and that leave salary is also based on pay as defined in F.R. 9(21). The State Government have examined the matter and have decided to follow the procedure obtaining in Government of India.
Government direct that for the purpose of calculation of Adhoc Dearness Allowance, House Rent Allowance and City Compensatory Allowance, pay shall be as defined in F.R. 9(21)(a).
Government also direct that additional pay admissible under F.R. 49 shall be treated as pay under F.R. 9(21)(a) and that the additional pay sanctioned under F.R. 49 may be reckoned as pay for purposes of calculations of Adhoc Dearness Allowance, House Rent Allowance, City Compensatory Allowance and Leave Salary. The instructions issued in the circular Memo.No. 24587/376/FR.I & L/73-1, Dt. 19-2-1974 and the orders issued in sub-para (vii) of the G.O.Ms.No. 341; Finance and Planning (PRC-I) Department, dated 27-11-1975 shall stand modified to this extent.
These orders shall come into effect from the date of issued of these orders and shall not apply to the past cases.