Central employees awaiting next govt nod on DA merger

New Delhi: Central government employees are awaiting next government nod on merger of 50 percent dearness allowance to basic Pay in the view of model code of conduct.

 

Family finances of government employees are being squeezed from all sides as inflation is rising at its fastest level in last four years. How can government employees cope with raising inflation besides merger of 50 percent dearness allowance (DA) to basic pay.

 

High prices of day-to-day goods make it difficult for government employees to afford even the basic commodities in their lives.

The Sixth Pay Commission did not talk about merger. As a result, with the continuous increase of dearness allowance, this has now reached up to 100 per cent of basic pay but the government did not merged 50 percent dearness allowance to basic pay on the pretext of sixth pay panel recommendation.

 

Earlier, the DA was merged with basic pay, only after it touched 50 per cent of the basic pay on the recommendation of fifth central pay panel.

 

The government has set up the Seventh Central Pay Commission to recommend for revising salaries of central government employees.

 

The 4-members commission, headed by Ashok Kumar Mathur, former Supreme Court Judge, will formulate pay, allowances and other facilities as well as benefits structure for 50 lakh central government employees.

 

The commission will also to look at the revision of pension for those who have retired prior to the date of effect of these recommendations.

 

However, the decision regarding merger of 50 per cent dearness allowance to basic pay will be taken only after the Seventh Pay Commission gives its interim recommendations under the terms of reference for the commission before submitting of its final report within 18 months of the date of its constitution.

 

The merger of 50 percent DA to basic pay will lead salaries rising by up to 30 per cent, which will cope with the present living cost of government employees.

The election Commission announced the Lok Sabha elections; model code of conduct makes the government lame-duck as it cannot take decision on merger of dearness allowance without permission of the Election Commission.

 

Hence, this genuine demand may be considered by the next government only on interim recommendation of seventh pay panel.

 

Source : http://tkbsen.in/2014/03/central-employees-awaiting-next-govt-nod-on-da-merger/

Posted by AIAIPASP at 10:16 AM

50 per cent DA in the basic pay is set to merge soon

As per Dainik Bhasker Article Govt. is ready to merge 50% DA with Basic Pay:-

38 million employees and 25 lakh pensioners electoral rarity 

50 per cent DA in the basic pay is set to merge soon

Govt. exercises  to attract 38 lakh workers, 25 lakh pensioners 

20 thousand crore additional burden on the exchequer 

Govt eyes on approximately 2 and half crore votes of Central government employees and pensioners and their families. Govt is preparing to merge 50 per cent dearness allowance (DA) into the basic pay to attracted approximately 38 lakh employees and 25 lakh pensioners. 

That would be in the next fortnight. If it happen, extra burden would cost of Rs 20,000 crore to the exchequer. 

It  may be pressure of employees of Trade Union/ threatening of indefinite strike by the central govt. employees with railway employee or it may be trial of attraction of 2.5 carores of voters. Infact D.A. is being merged with basic salary. The Secretary General of the AIRF Mr. Shiva Gopal Mishra who is representing nearly 12 lakh employees says last days, that he had correspondenced with the Prime Minister's Office and the Finance Ministry. He also met with Secretary of expenditure in this connection.

This indicates that it will be announced just after the vote on account of parliament. Press Secretary of National Federation of Indian Railwaymen Mr. S.N. Malik said that the Cabinet note in this regard has become according to  PMO sourcese. There is a file lying in the PMO at this time regarding this connection. It will be announced someday next week when Parliament is in session.

Infact DA of Central Govt. Employees reached up to 90% at this time and again due started with DA increment from 1st Jan. If this time there is an increase of 11 per cent on DA; it will be 101 per cent . Malik says that when the Fifth CPC DA had reached 72 per cent, 50 per cent DA was merged with basic pay without any demand from staff side. This time it is not being done. This demand of merger of 50 per cent of DA into basic pay DA of the unions is old. In view of this, , Minister of State for Finance Namo Narain Meena said in Parliament stated in August last year that Sixth Pay Commission has not recommended to merge the DA with basic pay . So the government is not doing so. However , now the situation has changed, in the view of general election, to woo the all the public the decisions are being taken. In this series, if DA has to be merged with the basic pay, then the exchequer put a burden of Rs 20,000 crore is estimated .

 

Source: Dainik Bhasker News

Via : http://karnmk.blogspot.in

 

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

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 declared 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 : gservants.com