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: http://www.hindustantimes.com/

[http://www.hindustantimes.com/india-news/govt-workers-want-da-to-be-merged-with-salary/article1-1155330.aspx]

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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.

Towards this matter, Central Government has briefed on many occasions in the Parliament.

At present, Central Government is thinking of bringing change in the AICPIN calculation system. In which way, this would pose impairment can not be ascertained at present. Not only the Central Government Employees but also the State Government employees anticipate the announcement of increase of DA percentage. This has become an eager expectations of more than a crore of employees.

As per the last 5th Central Pay Commission recommendations, once the DA crosses 50%, that has to be merged with Pay. But it is a sorrowful affair that such type of recommendation is not made in the 6th Central Pay Commission.

Instead of this, the recommendation for enhancement of some allowances by 25%, given, which would not be sufficient.

The expectation of the Central Government Employees is merger of DA with basic pay once it crosses 100%.

Whether this expectation would materialize?

The allowances which are going to by hiked are as given below:

1. Children Education Allowance including Hostel Subsidy, etc.

2. Special Allowance

3. Cash Handling Allowance

4. Washing Allowance

5. Split Duty Allowance

6. Bad Climate Allowance

7. Special Compensatory (Remote Locality) Allowance

8. (a) All components of Daily allowance on tour,
    (b) Mileage Allowances for road and bicycle journeys on tour

9. Special Compensatory (Hill Area) Allowance

10. Special Comp. Scheduled Tribal Area Allowance

11. Project Allowance

12. Fixed Conveyance Allowance

13. Cycle Maintenance Allowance

14. Special Allowance for Child care for women with disabilities

15. (a) Advance for purchase of Bicycle
      (b) warm Clothing Advance
      (c) Festival Advance
      (d) Natural Calamity Advance

16. Desk Allowance

Source: http://employeesorders.com

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Indian Banks’ Association

HR & INDUSTRIAL RELATIONS
No.CIR/HR&IR/76/D/2013-14/7581

1st August, 2013

All Members of the Association (Designated Officers)

Dear Sirs,

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960-100) for the quarter ended June 2013 are as follows:-

April 2013-    5158.65
May 2013-    5204.31
June 2013    –    5272.78

Consequently, dearness allowance to employees is payable for 593 slabs for the period August, September & October 2013 i.e. an increase of 32 slabs over the current level.

In terms of clause 7 of the 9th Bipartite Settlement dated 27.04.2010 and clause 3 of the Joint Note dated 27.04.2010, the rate of dearness allowance payable to workmen and officer employees for the months of August, September & October 2013 shall be 88.95% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

We advise banks to pay the difference between the old and revised salary and allowances to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.

Yours faithfully,

sd/-
(K. Unnikrishnan)
Deputy Chief Executive

Source: http://www.iba.org.in/Documents/scan0002.pdf

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Generally the announcement of DA comes in the month of every year but this year it did not happened as expected. The government employees were eagerly awaiting for the announcement. As everyone knows that it will be from the month of January 2012 onwards. This situation has raised due to the finance minister’s trip to the japan as information’s received from some media. we can expect the decision of the government as soon as the arrives from there. But surely the announcement of DA will come out in day or two. Normally ,the DA arrears will be disbursed for January & February and DA For March is included in the monthly salary but as of now, the situation may change.

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