GET READY FOR STRIKE IF GOVERNMENT REJECTS DA MERGER, GDS INCLUSION & INTERIM RELIEF

   Eventhough Government has announced constitution of 7th Central Pay Commission, the appointment is yet to take place. In the meanwhile one round of discussion was held with Secretary, DOP&T on terms of reference. Subsequently, the staff side, JCM National Council has submitted a unanimous proposal on the items to be included in the terms of reference of the 7th CPC, which includes (i) date of effect as 01.01.2014 (2) merger of DA with pay (3) grant of interim relief (4) inclusion of GDS under the ambit of 7th CPC (5) statutory pension for those entered into service on or after 01.01.2004 (6) settlement of anomalies of 6th CPC (7) cashless/hassle-free medicare facilities etc.

   Government while announcing the 7th CPC has made it clear that the date of effect will be 01.01.2016. Further nothing has been mentioned about DA merger and interim relief. Regarding GDS the declared stand of the Government is that GDS are not civil servants and in the past also every time when CPC is appointed, the Government refused to include them in the Pay commission. Last time also inspite of the strong protest and agitational programmes conducted by NFPE and Postal JCA, the Government has appointed a bureaucratic committee. Regarding statutory pension to those who entered into service on or after 01.01.2004, the Government’s stand is well known and it may refuse to include this item also in the terms of reference.

Govt. workers want DA to be merged with salary.

   Government employees have asked the Centre to consider merging dearness allowance with their pay, arguing that the Sixth Pay Commission -- quite like the Centre -- could not have anticipated the high inflation that has eroded real wages over the last decade.

   Since 2006 – when the recommendations of the last pay commission came into force – the dearness allowance has increased to 90%, a reflection of the high inflation environment that employees have to cope up with.

   The demand was made at a preliminary meeting held between the department of personnel and the employee representatives to discuss the proposed Seventh Pay Commission announced by Prime Minister Manmohan Singh in September.

Merger of Dearness Allowance with the Pay of the Central Government Employees – reg.

Prime Minister’s Office
New Delhi – 110101

Sub: LETTER OF Sh. M RAGHAVAIAH
NFIR, 3, CHELMSFORD ROAD, NEW DELHI-55

   A letter dated 27-09-2013 received in this office from Sh. M RAGHAVAIAH is forwarded herewith for action as appropriate.

[RITU SHARMA]
SECTION OFFICER

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI- 110055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. 1/5 (A)

Dated: 27.09.2013

Hon’ble Prime Minister of India,
Raisina Hill,
South Block,
New Delhi.

Respected Sir,

Sub:- Merger of Dearness Allowance with the Pay of the Central Government Employees – reg.

   While thanking you for the decision for appointment of 7th Central Pay Commission, we request you to kindly appreciate that the Dearness Allowance paid to the Central Government employees had crossed 50% of pay as on 01.01.2011. This portion of the Dearness Allowance needs to be merged with the Pay for all purposes as was done in the year 2004.

Shortly DA would cross 100 percent. Once again, all allowances would enhance by 25%.

   As per the information received, unlike previous time, decision on DA would be taken by Cabinet Committee Meeting without delay. Subsequent to release of AICPIN for the month of June by Labor Bureau, Finance Ministry would send for the approval of the Cabinet for final decision on DA. After obtaining the approval, Finance Ministry would release the specific orders procedurally for disbursement of money.

   Additional DA will be paid along with the salary of this month

   The arrears for the month of July and August would also be paid. With the increase of DA by 10%, the total amount of DA would enhance and stay at 90%.

   By next year, it would cross 100%. During that period, as pointed out in the 6th Central Pay Commission, certain allowances would enhance by 25%. But, that is not the expectations of the Central Government Employees. Their requirements are merger of DA with Basic Pay.

Merger Of 50% DA With Pay : Resolution adopted in INTUC Conference.

Merger Of 50% DA With Pay

   The 30th Plenary Session of Indian National Trade Union Congress INTUC  is being held in Raipur from 6-9-2013 to 9-9-2013 is concluded today. There are 4 Resolutions which are considered to be very important are adopted in this Conference.One of the four main resolution is Merger of 50% DA with Pay for central government employees. So the INTUC urges the central government to consider the demand  and accord sanction for merging 50% DA with pay. The Resolution On Merger Of 50% DA With Pay which has been adopted in 30th Plenary Session of  INTUC held in Raipur from 6-9-2013 to 9-9-2013 is given below

Resolution On Merger Of 50% DA With Pay

   The Wage structure revision for Central Government employees had been enquired into by the successive pay Commission appointed by the Government of India during the past decades and gave their reports. The Government had considered the reports and decided for implementation with certain changes and improvements.

Merger of 50% DA issue: Dearness Allowance as Dearness Pay

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA

UNSTARRED QUESTION NO-4384

ANSWERED ON-07.05.2013

Dearness Allowance as Dearness Pay

4384 . SARDAR BALWINDER SINGH BHUNDAR

   (a) whether the earlier Pay Commissions for Central Government Employees had recommended that a certain percentage of Dearness Allowance to be treated as Dearness Pay;

   (b) if so, the details thereof; and

   (c) by when the salaried class as well as pensioners are likely to be benefited so as to overcome the hardship being faced by them to maintain their day-to-day household expenses?

ANSWER

   Minister of State in the Ministry of Finance (E & FS) (Shri Namo Narain Meena)

   (a)&(b) The 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

   (c) The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.

Source: www.rajyasabha.nic.in

No merger of D.A. but seventh pay commission likely this year.

   According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission.

   The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it's recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation.

   Most significantly, in the eve of general election, the Govt. may spread a "feel good" situation among the employees without having to pay an extra penny from the exchequer.

   In the other hand merging D.A. with basic pay will lead to a considerable expense and as there is definite negative recommendation of sixth CPC in this respect, Govt. can easily deny this demand. After formation of seventh CPC, if the ruling party fails to come back in the corridors of power, the entire liability will have to be borne by the new Govt. So, it's a win win situation of the ruling party and most likely, it will be announced in the later half of the year.

Source:http://paycommissionupdate.blogspot.in/2013/04/no-merger-of-da-but-seventh-pay.html#more

AIRF urged Finance Minister of India to announce Payment of Dearness Allowance to Central Government Employees and Pensioners.

All India Railwaymen's Federation

No.AIRF/13

Dated: April 9, 2013

Shri P. Chidambaram,
Hon’ble Finance Minister,
Ministry of Finance,
(Government of India)
North Block,
New Delhi.

Dear Sir,

Sub: Payment of Dearness Allowance to Central Government Employees and Pensioners

   It is very unfortunate that the announcement for the payment of Dearness Allowance is being delayed badly and is creating lots of frustration among the Central Government Employees as well as Pensioners. Particularly Railway Employees, who are the prime mover of the wheel of the development and growth of the nation, they also feel frustrated because of inordinate delay in the announcement for the payment of Dearness by the Government of India(Ministry of Finance).

   In this connection, it is worth-mentioning that, it has never happened in the past so many years when payment of Dearness Allowance has not been announced before 31st March.

   All India Railwaymen’s Federation, representing more than 13 lakh Railwaymen as well lakhs of Central Government Employees and Pensioners(through the NC/JCM), strongly protests against the delay in announcement of Dearness Allowance and demands that it should be announced immediately to avoid any confrontation.

Yours faithfully,

Sd/-
[Shiva Gopal Mishra]
General Secretary
            &
Member NC/JCM(Staff Side)

Announcement of DA from January 2013: Speculation of reasons for delay.

   After implementation of recommendations of Sixth Pay Commission the Govt. has accepted the calculation of standard formula for calculation of future DA and in para 4.1.19 Sixth Pay commission has recommended that DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September.  After 6th CPC implementation order of DA from January of respective years was issued/declared as follows:-

15/3/2007- 6% – Thursday
07/3/2008 -6% – Monday
26/2/2009- 6% – Thursday
19/3/2010 –8% – Friday
22/3/2011- 6% – Tuesday
23/3/2012 -7% – Friday

   DA from January, 2013 is yet to be announced.  No any reason for delay is stated from any reliable sources and no exact reason can be constitute for it.  Now everyone to speculate the reason for delay in announcement.  The following main facts are presented to inspect the reasons:

1. Merger of DA with Basic Pay:  This is the first reason is everyone’s mind.

   Positive points are for this reason:-
   (a).  Unexpected delay in announcement -  Traditionally DA for January should be announced in the Month of March.  There is no complicated formula for calculation of expected DA.  Only formal announcement was to made by Govt.
 
   (b).  2014 General Election – Next General Election is in near future.  All are expecting that Govt. may consider about merger of DA in view of the inflation and vote bank.

   (c).  Union Minister Ajay Maken’s letter to PM about inflation -  This letter showing that some part of Govt. is also in favour of enhancement of pay and allowances of Central Government Employees.

   (d).  Employee Unions are pressing hard for merger of DA.

   (e).  In press clip for expectation of announcement of DA on 2th April mostly news article added that confederation has demanded the merger of DA and in practice govt. merged the DA when it reach 50% cap.

   Negative points of this reason:-

   (a) 6th CPC has not recommended for merger of DA.  In Para 4.1.18 of recommendation of 6th CPC :

   4.1.18 ……This conversion, however, is not necessary in the revised structure being recommended where increments are payable as a percentage of the pay in the pay band and grade pay thereon and provision has been made for all allowances/benefits to be revised periodically linked to the increase in the price index. The Commission is, therefore, not recommending merger of dearness allowance with basic pay at any stage.

   (b)  Recently Govt. already denied any possibility of merger of DA.

2.  Delay in announcement due to administrative reasons:-

  Finance Minister, who is the main authority to approve the DA was on tour in past.  In practice decision of approval of enhancement in DA can be taken in Cabinet Meeting [meeting of Economic Affairs].  On the constitution of meeting of economic affairs on 2nd affairs the media had expected on 1st April that enhancement in DA will be approved by Govt.  But in absence of Finance Minister the meeting which was chaired by PM deferred the hike in DA including other major decision related to Finance Ministry.

   The next meeting of Cabinet Committee of Economic Affairs was also placed on 4th April but there was no any indication about approval of DA, however govt.  decontrolled the lavy on sugar.

   The decision on hike in DA by CCEA is based on some calculation about impact of enhancement of DA in govt. budget.  The administrative reason for delay may be insufficient calculation or any mis-calculation of impact of enhancement of DA.

   In the conclusion even after the seventh day of the month of April, the enhancement in DA from January, 2013 is yet to be declared by the Government.  On Tuesday or Thursday [traditionally the meeting day of cabinet] decision may be taken by Govt.  This time if formal announcement not made by Govt. and any written approval was got by authority to hike in DA, we expect the direct formal order from Department of Expenditure.  All knows the announcement of DA hike can be delayed but not denied.

Source: www.karnmk.blogspot.in

Dearness Allowance from January 2013 - 6th CPC Recommendations on merger of 50% Dearness Allowance.

   "No any recommendation in 6th CPC Report on merger of 50% Dearness allowance with basic pay at any stage"...

   Dearness Allowance from January 2013 – 6th CPC Recommendation

   As of now nobody knows the correct reason why the government is delaying the approval of DA hike from January 2013. Actually the delay in announcing the dearness allowance helps the people speculate more about the Governments Plan about whether the 50% DA will be merged or not.

   As per the 6th CPC recommendation accepted by the government, the Dearness Allowance supposed to be enhanced from 1st January of every year has to be paid with salary of month of March. The 6th CPC was very much clear about two things; first one is the formula for calculating the quantum of DA to be paid to central government employees and its frequency. Second one is on Merger of 50% Dearness allowance with Basic pay by converting it as dearness Pay.

   Sixth Pay Commission recommendation on Merger of 50% Dearness Allowance and sanctioning of DA to central government employees.

   It has been clearly told in 6th CPC recommendations under the Heading of Dearness Allowance, Chapter no 4.1…

   4.1.18 ……This conversion, however, is not necessary in the revised structure being recommended where increments are payable as a percentage of the pay in the pay band and grade pay thereon and provision has been made for all allowances/benefits to be revised periodically linked to the increase in the price index. The Commission is, therefore, not recommending merger of dearness allowance with basic pay at any stage.

   4.1.19 No real justification exists for revising DA once in 3 months. Accordingly, DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September respectively for administrative convenience with inflation neutralization being maintained at 100% at all levels.

   As it was the recommendation of 6th CPC , even after the seventh day of the month of April, the quantum of DA to be increased is yet to be declared by the government is quite new for central government employees. But it is evident that ‘announcement of DA hike can be delayed, but Payment of increased Dearness Allowance cannot be denied’.

Source:www.gservants.com

Merger of 50% of DA and DR with basic pay’ – Finance Ministry

   ‘Merger of 50% of DA and DR with basic pay’ – Finance Ministry explained as a reply to a unstarred question in the Parliament on 14th December, 2012.

   The below explanation was presented by the Minister of States for Finance Shri.Namo Narain Meena to the questions regarding merger of DA / DR with basic pay of Central Government employees and Pensioners in the Parliament on 14.12.2012…

   Whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners and the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

   Yes, A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

   The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

   (Note : Merger 50% of Dearness Allowance with basic pay to the employees of Central Public Sector Enterprises (CPSEs) following 1997 Industrial Dearness Allowance (IDA) pattern of scales of pay with effect from 1.1.2007.)

Decision on hiking dearness allowance deferred.

   Decision on hiking dearness allowance deferred

   The government on Tuesday deferred a decision on hiking dearness allowance (DA) of central government employees to 80 per cent, from 72 per cent at present.

   An increase in DA would have benefitted about 50 lakh employees and 30 lakh pensioners.

   "The proposal on DA has been deferred as the Finance Minister was not present," Information and Broadcasting Minister Manish Tewari told reporters after the Cabinet meeting chaired by Prime Minister Manmohan Singh here.

   Finance Minister P Chidambaram is on an official visit to Japan.

   A hike in DA has been proposed with effect from January 1, 2013, according to sources.

   The government had hiked DA to 72 per cent in September last year. The increase was with effect from July 1, 2012.

   The Confederation of Central Government Employees has demanded merger of up to 50 per cent DA with the basic pay and setting up the seventh pay commission at the earliest.

   As per the practice, the DA is merged with basic pay when it breaches the 50 per cent cap. This helps employees get higher allowances as those are paid as proportion to the basic pay.

Source:economictimes

MERGER OF DA IN BASIC PAY.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

LOK SABHA

UNSTARRED     QUESTION NO    3632

ANSWERED ON      14.12.2012

MERGER OF DA IN BASIC PAY

   3632 .    Shri SOMENDRA NATH MITRA
   Will the Minister of    FINANCE     be pleased to state:-

   (a)    whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners;

   (b)    if so, the details thereof and reaction of the Government thereto; and

   (c)    the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (E&FS) (SHRI NAMO NARAIN MEENA)

   (a): Yes Sir.

   (b): A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness AHowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

   (c): The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

source-http://loksabha.nic.in/