Table III

                           Dearnes Allowance

                             (see par 11)

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 Basic pay slabs           Rate of neutralization for determining

                           Dearness Allowance payable over quarterly

                           Regional Consumer Price Index Number

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 1. Up to Rs.5000/-        100% of basic pay

 2- Between Rs.5001/-      80% of basic pay or 100% of Rs.5000,

    and Rs.7000/-          whichever is  higher.

 3. Between Ra.7001/-      60% of basic  pay or 80% of Rs.7000,

    and Rs.9500/-          whichever is  higher.

 4. Between Rs.9501/-      45% of basic  pay or 60% of Rs.9500,

    and Rs.12500/-         whichever is  higher.

 S. Above Rs.12500/-       40% of basic  pay or 45% of Rs.12500,

                           whichever is  higher.

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 Formula for calculating Dearness Allowance

     Average Regional Index for the Qr. in question - Regional CPI No. for 1998 (ie.last Qr.of 1997)

 DA = --------------------------------------------------------------------------------------------------- X rate of neutralisation X Basic Pay

        regional CPI number for the Year 1998 (ie.last Qr.of 1997)

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DA=(Average RI minus RCPI) multiplied by Rate of neutralisation and Basic Pay and Divided by Regional CPI No.