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

Government 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 corresponded 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

Read More...

Dearness Allowance should be merged with the pay for all purposes – AIRF

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

Read More...

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.

Congress media department chief Ajay Maken had asked the Prime Minister to announce the next pay commission in March this year. Writing in his capacity as a cabinet minister, Maken had also argued for a liberal increase in the salaries of government officials to attract and retain talent.

Representatives of government employees weren’t as optimistic.

Umraomal Purohit, secretary, staff side, however, did stress on the merger of dearness allowance (DA) with the basic pay. Purohit said that the sixth pay commission did not recommend merger as they could not have anticipated a high rate of inflation which resulted in employees being granted a 90% rate of DA.

Purohit and other representatives also emphasised that a system should be put in place to ensure that anomalies created due to recommendations of pay commissions should be resolved within a year of the implementation of the report.

Government sources said the pay commission could be notified over the next two months or so, well before the model code of conduct for the general elections kicks in. Also, the Centre is expected to give the panel enough time to prepare its report in the hope that the government would be a lot more comfortable vis-a-vis the fiscal deficit by the time the panel submits its report.

Source:hindustan times

Read More...

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

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.

sd/-

[RITU SHARMA] 

SECTION OFFICER

SECRETARY, D/O Personnel & Training, M/O Pers, P.G. & Pensions
----------------------------------------
PMO ID No.1/3/2013-PMP2/94821 dated 17-10-2013

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.

2. According to the figures available, the Central Government employees will get at least 9% increase in the Dearness Allowance w.e.f. 01/01/2014 thus the DA may be almost 100% of pay.

NF1R, therefore, requests you to kindly see that Government takes decision for merger of 50% DA with pay for all purposes with effect from January 1, 2011.

Yours faithfully, 

sd/- 

(M. Raghavaiah) 

General Secretary

Source: https://docs.google.com/file/d/0B-4C7fBGTmYGUzNOMTRSMU5wMzg/edit?usp=sharing

Read More...

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

Read More...