Merging of DA with basic pay of Central Government employees - Rajya Sabha News

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

RAJYA SABHA

UNSTARRED QUESTION NO-2062

ANSWERED ON-11.02.2014

Merging of DA with basic pay of Central Government employees

2062 . SHRI PRABHAT JHA, ARVIND KUMAR SINGH, KUSUM RAI

Will the Minister of FINANCE be pleased to state:

(a) whether Government is actively considering to merge existing dearness allowance payable to Central Government Employees with basic pay;

(b) if so, the details thereof, and if not, the reasons therefor; 

(c) whether Government has received any representation from employees associations in this regard;

(d) if so, the details thereof and the details of action taken thereon; and

(e) the reasons for delay in constitution of 7th Central Pay Commission?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

( SHRI NAMO NARAIN MEENA)

(a) No Sir.

(b) The 6th Central Pay Commission did not recommend merger of Dearness Allowance with basic pay at any stage. This has been accepted by the Government vide Resolution dated 29th August, 2008. 

(c)&(d) A number of representations have been received from Associations/Organizations of Central Government Employees demanding merger of 50% of Dearness Allowance with basic pay. However, in view of (b) above, the same has not been agreed to. 

(e) The Government has already decided to constitute the 7th Central Pay Commission under the Chairmanship of Justice Ashok Kumar Mathur, Retired judge of the Hon’ble Supreme Court.

Source: http://rajyasabha.nic.in/

30% salary hike through 50% DA Merger - Percentage analysis

Can the govt. servants get 30% Salary hike on account of 50% DA Merger? – An analysis

It is observed that recently Public Medias are interested to publish the news about pay hike of central government employees.

We all know the Federations of Central Government employees have been holding demonstrations and Struggles to invite the attention of govt. to settle their many demands for the past few months. As a result of this Centre has accepted to settle some demands.

One of the main demands laid down before the Central Government by Federations is 50% DA Merger. A Sensational News was spread across the country that a decision on 50% DA merger will be announced in the Cabinet Meeting held last week. But, though there

was no any formal announcement in this regard, the approval of 7th CPC Terms of reference by Government made everyone to think that it will be considered sooner or later.

A Popular English daily published a tabloid news last week, in which The daily claimed that a govt. official informed them ‘the govt. servants will get 30% Pay Hike on account of Merger of 50% dearness Allowance with Basic Pay.’

Is that true? Let us see with an example

For example, let us consider as if a government servant is working in one of the four metropolitan cities and rendered 10 years’ of service.

His Basic Pay is (7600+2400)	10,000
Dearness Allowance 100%	10,000
HRA 30%	3,000
Transport Allowance (1600+1600)	3,200
Total	26,200

Rs.26,200 is the maximum total emoluments of this particular Basic Pay. This will not be exceeded at any cost but there are some reasons to make these total emoluments to be lesser than this.

The salary with same basic pay after DA merger

In case the central government agrees to merge the 50% DA with basic pay, then that govt. servant can expect a considerable pay hike on account of Merger of 50% DA.

After Merger of 50% DA his Pay will be as fallows

Basic Pay (7600+2400)	10,000
Dearness Pay	5,000
Dearness Allowance	7,500
HRA	4,500
Total	29,400
Total Hike in Pay (29400 – 26200)	3,200
% of Hike is	12%

How can one say that he will be getting 30% hike when he is getting only Rs.3200 in addition to his previous salary of Rs.26,200 after 50% DA merger?

Everybody fallowed the particular Daily and started writing that the Government servants will get 30% salary hike after 50% DA is merged with basic Pay. But this example clearly shows that there is no such hike and if the DA is merged with Basic Pay the increase in salary will be only from 8% to 15%

According to their entitlement the percentage of increase will vary, but no one can get 30% pay hike on account of DA merger.

Source:http://7thpaycommissionupdates.blogspot.in/2014/03/can-govt-servants-get-30-salary-hike-on.html

Merger of 50% DA with Pay and grant of Interim Relief.

NFIR

National Federation of Indian Railwaymen

No.II/95/Pt. VI 

Dated: 20/02/2014

The General Secretaries of

Affiliated Unions of NFIR.

Brother,

Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation. 

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,

Sd/-

(M.Raghavaiah)

General Secretary

Source: NFIR

Merger of Dearness Allowance with Pay

All India Railwaymen’s Federation 

(Estd. 1924)

4, State Entry Road, 

New Delhi-110055 

INDIA

No.AIRF/13

Dated: January 9, 2014

The Secretary(Exp.),
Ministry of Finance,
(Government of India)
North Block,
New Delhi

Dear Sir,

Reg: Merger of Dearness Allowance with Pay

On the persistent forceful demand of the Central Government employees, including Railwaymen, successive Central Pay Commissions were appointed by the Government of India with a view to improve upon wage structure and to grant parity with other employees of the Public Sector Undertakings in the wake of market inflation and price hike of essential commodities. These Pay Commissions, while recommending revised pay structure have also recommended grant of Dearness Allowance on the basis of increase in the Price Index.

The very purpose of compensating the pay with payment of Dearness Allowance is being defeated because of unbridled inflationary pressure on the economy and the consequent steep rise in the price of essential commodities.This has resulted in erosion of the value of the wage, remarkably beyond tolerable limit, as a consequence of which, payment of Dearness Allowance has failed to compensate devaluation of pay.

While Dearness Allowance was merged with the pay on crossing the percentage beyond 50% during V CPC as the actual value of wage devaluated because of market hike to compensate eroded value of the wages besides payment of Dearness Allowance, but this time Dearness Allowance, which has already gone beyond 80% w.e.f. 1st July, 2013, is yet to be merged with the pay.

It would, therefore, be quite appropriate and in the fitness of the thing that Dearness Allowance is merged with the pay for all purposes to compensate the erosion in the wage in the wake of market inflation and steep price hike of essential commodities which are posing serious constraints in the livelihood of the Govern employees in general and the low-paid employees in particular.

Yours faithfully, 

Sd/-

(Shiva Gopal Mishra)

General Secretary

Source: AIRF

Merger of 50% percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source:http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/

Merger of 50% DA effectively amounting to 78.2% as on 01.01.2007 for BSNL Employees Order Issued.

No 61-01/2012-SU
Government of India
Ministry of Communications & Information Technology
Department of Telecommunications

Sanchar Bhavan, 20 Ashoka Road
New Delhi -110001
Dated, the 10th June, 2013

   In exercise of the powers conferred by the Article 145 of Articles of Association of the Bharat Sanchar Nigam Limited (BSNL), the President is pleased to approve the proposal of BSNL regarding the fitment formula as per Department of Public Enterprises OM No. 2(70)108- DPE(WC)-GL-VII/09 dated 02.04.2009, Accordingly, in partial modification of this Department’s Order No. 61-01/2009-SU dated 27.02.2009, the benefit of merger of 50% DA effectively amounting to 78.2% as on 01.01.2007 for the purpose of fitment in respect of the Board level & below Board Level executives and Non-Unionized Supervisors and Non- executives of BSNL is hereby allowed from the date of issue of this order.

   2. No arrears will be paid and the revised fitment on the basis of DPE OM dated 02.04.2009 will be paid with prospective effect only.

   3. BSNL has to bear the additional financial implication on account of revised fitment benefit for pay revision from its own resources and no budgetary support will be provided.

   4. All instructions/guidelines issued by DPE from time to time in this regard may be scrupulously followed.

   5. This has the concurrence of Internal Finance Division(TPF), Department of Telecommunications vide Dy. No. 05/171/PSF/13 dated 10.06.2013.

Sd/-
(Sanjeev Gupta)
Director (PSU-1)

Source:http://bsnleuchq.com/78_order.pdf