New Pension Scheme (NPS) : Dearness Allowance counted or not..?

New Pension Scheme (NPS)

Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.


Whether contribution towards Tier-I from arrears of DA is to be deducted?

Yes.
Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.