Cabinet approves 6 percent Dearness Allowance hike for Central Government employees

“In the 7th Pay Commission report, submitted to the government on 19.11.2015, it was mentioned that the DA is assumed to be 125 percent as on 1 January, 2016, the day from which the
Commission expects its recommendations to be implemented by the government. As calculated by the 7th Pay Commission, a six percent Dearness Allowance hike is being given to the Central Government employees.”

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

On 23.03.2016, Wednesday, the Centre decided to give a Dearness Allowance of 6 percent to the Central Government employees in order to enable them to manage the price rise and inflation.

On the occasion of Holi, a special cabinet meeting, under the leadership of Prime Minister Narendra Modi, was held in New Delhi on 23rd March 2016. At the end of the meeting, Mr. Ravishankar Prasad, the Minister of Communications and Information Technology, spoke to the reporters. He said, “The cabinet has decided to issue a Dearness Allowance of six percent to the Central Government employees and pensioners.”

The Dearness Allowance is expected to be calculated from January 1, 2016 onwards. This increases the total Dearness Allowance from 119 percent to 125 percent. More than 50 lakh Central Government employees and 58 lakh pensioners will benefit from this. The government will incur an additional financial burden of Rs.14,725 crores. Dearness Allowance is issued twice a year, based on inflation. The previous Dearness Allowance hike, of six percent, was issued in the month of September 2015, and had a retrospective effect from July 2015 onwards.

This is the last and final instalment of Dearness Allowance calculated by the recommendations of 6th Pay Commission. And, after implementation of 7th Pay Commission the new and first Dearness allowance from 1.7.2016 will be approved by the Cabinet in the middle of September 2016.

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Member of the Seventh Central Pay Commission Rathin Roy has suggested that to meet its fiscal deficit target the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year and defer implementing any real increases in pay and pensions. This, the member has said, could be done by compensating those who would have to bear the burden of the deferred effect by giving them a “more generous award distributed over several years”.

“I am saying that the increment need not all be given at one go… It can be staggered and made more generous… So this could be done for pay and for pension,” Dr. Roy told The Hindu in an exclusive interview. “Now I am not competent to say whether this is politically feasible or not,” he, however, added.

Last month, the Union Cabinet set up an empowered committee of secretaries under the Cabinet Secretary for processing the recommendations of the Commission.

The pay and pension revision recommendations of the Commission are scheduled to take effect from January 1, 2016, but Dr. Roy, who is also the National Institute of Public Finance and Policy’s Director, has suggested that the implementation should be pushed to April 1.

What they should get, from April 1, 2016, is what they would get if we merge the basic pay and the DA, which is more or less what they are already getting, he said. “That will mean some increase in allowances but other than house rent allowance the burden of that [on the government budget] will not be very high.” He has also recommended that the Government defer allowances, principally the house rent allowance. “The case for that is strong because we are in the midst of fairly flat growth in consumption expenditure and rents are not going up much.”

Ahead of the presentation of Union Budget 2016-17, the Government is considering options for keeping the fiscal deficit for the next year within the Fiscal Responsibility and Budget Management target. The Government’s fiscal deficit in 2008-09, the year the Sixth Central Pay Commission award was implemented, doubled to 6 per cent, though not all of the increase was on account of the pay and pension hikes. Currently, Central government pay and allowances account for 1 per cent of the country’s GDP.

The Seventh Pay Commission, which submitted its report in November 2015, estimated that the total financial impact due to the hike in pay and allowances of central government employees recommended by it would be Rs 1,02,100 crore. Of this, Rs 73,650 crore will be borne by the General Budget and Rs. 28,450 crore by the Railway Budget. The Commission was set up by the UPA government in February 2014 to recommend revisions of remuneration for 48 lakh central government employees and 55 lakh pensioners.

Source: The Hindu

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An another announcement of hiking in Dearness allowance to the employees of State Government of Tamil Nadu today.

Tamilnadu Chief Minister announces an additional DA to state employees from 1.1.2015.

More than eighteen lakh state government employees will get the hike, which is effective from 1.1.2015.

Following the Central Government, the state government has declared DA to its employees from the existing rate of 107% to 113% with effect from 1.1.2015.

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Pensioners seek merger of 50 p.c. DA with pay

The Tamil Nadu Government Education Department Retired Ministerial Employees’ Association has urged the State government to merge 50 per cent of dearness allowance with pay to benefit both in service employees and retired personnel.

A resolution adopted at its state executive meeting here on Sunday wanted the Treasury Officers to issue identity cards to pensioners.

Another resolution wanted some concession in the bus fare for the retired employees.

The following were elected state office-bearers of the association: B. Viswanathan – president; N. Subbiah vice-president, and A. Janarthanam – general secretary.

Read more at The Hindu

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Press Note
CGEC, NOCGE, INTUC
To observe “NATIONAL PROTEST DAY” ON 5th December, 2014
All Over India along with all Central Trade Unions in India

New Delhi, Nagpur,Mumbai,Ranchi, Bangalore, Cochin; 24/10/2014
Central Government Employees Confederation (CGEC); National Organisation of Central Government Employees (NOCGE) and INTUC have unanimously resolved to observe “NATIONAL PROTEST DAY” on 5th December, 2014 all over India along with all Central Trade Unions in India (Viz: INTUC, BMS, CITU, HMS, AITUC, TUCC, AIUTUC, AICCTU, UTUC, SEWA, LPF and all Federations of Banks, Railways (NFIR & AIRF), Defence (INDWF & AIDEF), Insurance, Central/State Govt. and other Service Establishments Employees).
Demands

1. Central Govt. should desist from its unilateral move to amend Labour Laws and consult and honour the views of Central Trade Unions.

2. Central Govt. should withdraw the retrograde move in allowing/hiking Foreign Direct Investment (F.D.I.) in Defence Sector, Railways, Insurance, PSUs and other Sectors.

3. Restore minimum wages of Rs.15,000/- to all the Unorganised/Contract Workers and Minimum Wages of Rs.26,000/- to the lower paid employees of Central Government.

4. Demands of Bank Officers and Bank Employees should be immediately accepted in respect of their Wage Revision and other privileges and social security measures, which are over due (Go through the Circulars dated 14/10/2014 & 16/10/2014 issued by the UFBU, AIBOBOA, INBOC, INBEC and INBEF etc.)

5. Strict implementation of existing Labour Laws concerning the Welfare of the Working Class all over India.

6.Benefits of Regular Workers should be given to all Contract Workers.

7. Compulsory Registration of Trade Unions within 45 days and all the ILO Conventions meant for the Workers should be ratified by the Govt. Of India.

8. 50% D.A. of Central Staff should be merged with Pay and Interim Relief should be paid to all employees, pending finalisation of the 7th Central Pay Commission.

9. Minimum 4 Promotions should be given to all Central Govt. Officials, without the hindrances of Departmental Examinations and DPC proceedings, on or before their respective date of retirements.
10. MACP/ACP benefits should be extended to all Central Government Employees, including the staff of Autonomous Body/Semi-Govt. Departments.

11. Bonus eligibility and Bonus Ceiling should be raised as per the present Price Index Cost of Living and Updated Model of Pay Structure.

12. Present quantum of Pension should be raised with adequate Medical facilities/Medical Allowance and the New Pension Scheme should be liberalised as Worker-Friendly.

Accordingly, all the Unions, Associations and their Federations are requested to observe “NATIONAL PROTEST DAY” on 5th December, 2014 by way of Mass Demonstrations and Mass Protest Meetiungs & Rallies all over India and give wide publicity through Newspapers, T.V. Channels and AIR/Doordarshan etc. Concerned Office-bearers are requested to send a report after observing the above programme of action to the undersigned on or before 15/12/2014.

Source: NOCGE News

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The Cabinet today approved merger of 50% dearness allowance of Central government employees and pensioners with their basic pay.

However, it has deferred a decision on anti-corruption ordinances and Forward Contract Regulation (Amendment) Act. A special Cabinet meeting is likely tomorrow to take call on these ordinances.

Source: www.business-standard.com

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BSNL Employees Union published a message about the merger of 50% Dearness allowance to Central Government Employees and Pensioners.

The Central Government has already formed the 7th Pay Commission for it’s employees. The Commission will recommend wage revision for the 50 lakh Central Government employees, as well as pension revision for the 30 lakh pensioners.

As per media reports, the Government may merge 50% DA with the basic pay, for which the unions are hard pressing the Government. As of now, the Central Government employees are getting 90% DA. They are going to get another 10% DA increase from next month, which will take their total DA to 100% of pay. The normal practice is that DA will be merged with pay, when it reaches 50%. Merger of 50% DA with basic pay was done by the 5th Pay Commission, while the 6th Pay Commission refused to do so. Now, as per media reports, the Government is likely to make a proposal in this regard to the terms of reference for the 7th Pay Commission.

In respect of the BSNL employees, the BSNLEU has already raised the demand that 50% IDA should be merged with the basic pay. The recently held Rajkot CEC meeting of BSNLEU has passed a resolution, strongly demanding 50% IDA merger.

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Centre should pay DA of state govt employees as well: Mamata

Kolkata, Feb 22 (PTI) Centre should come forward and pay the dearness allowance of state government employees as well, West Bengal Chief Minister Mamata Banerjee demanded today.

“Whenever the Centre announces DA, state government employees should be given the same on a par (with central government employees).

“They (Centre) give it (to central government employees) before elections. Will others (state government employees) suck their thumbs?” Banerjee asked.

“We want the Centre to pay the DA for (state government) employees,” Banerjee said.

Source: PTI
[http://www.ptinews.com/news/4432201_Centre-should-pay-DA-of-state-govt-employees-as-well–Mamata-.html]

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Central gazetted officers finalise demands

A workshop organised by the Confederation of Central Government Gazetted Officers’ Organisations, Tamil Nadu region, has finalised the common minimum demands to be placed before the 7 Central Pay Commission, including a just and equitable pay at the entry level of Group ‘B’ officers.

It was also agreed upon at the workshop here on Saturday to demand a joint consultative machinery to redress their grievances and a minimum of five promotions during their tenure — from entry to Group ‘B’ level either by promotion or direct recruitment.

The workshop for the constituents of the Confederation sought merger of 50 per cent dearness allowance for all purposes with effect from January 1, 2011 or 100 per cent DA with effect from January 1, 2014 for the serving officers. Other demands included free and hassle-free medical facilities to Group ‘B’ officers and adequate travel entitlements.

Source : www.thehindu.com
[http://www.thehindu.com/news/national/tamil-nadu/central-gazetted-officers-finalise-demands/article5490705.ece]

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