No W-02/0045/ 2020-DPE(WC)
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises

Public Enterprises Bhawon,
Block No.14, CGO Complex,
Lodhi Rood, New Delhi-1 10003.Dated 8th January, 2021

OFFICE MEMORANDUM

Subject: Freezing of Dearness Allowance of Employees of CPSEs -reg.

The undersigned ts directed to refer to Ministry of Coal (MoC)’s OM No 49015/1/2020-LA IR dated 07.12.2020 and Ministry of Mines (MoM) 11/18/2020 Mof 1 dated 14.12.2020 seeking clarifications in the matter cited above.

Freezing of Dearness Allowance to Employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 & 1987 IDA pay revision guidelines at current rates till 30th June, 2021

Freezing of DA of CPSEs employees drawing pay as per IDA pay revision – High Court Ernakulam Judgement 17.12.2020

2. DPE vide OM dated 19.11.2020 has issued guidelines on freezing of IDA rate w.e.f. 01.10.2020 till 30.06.2021, in respect of Executives and Non-Unionized Supervisors of CPSEs following 2017, 2007, 1997, 1992 & 1987 IDA pay scales Para 3 of the said OM inter-alia, states that “The above guidelines shall be applicable in case of Executives and Non-unionized Supervisors of CPSEs drawing 2017, 2007, 1997, 1992 & 1987 IDA pay scales.” The other employees including workmen of CPSEs are not covered under these guidelines.

(Samsul Haque)
Under Secretary

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The 6th Pay Commission had recommended a Multiplication Factor of 1.74, but the Central Government chose to change it to 1.86. One of the reasons for this modification was the intense pressure from various Federations of Central Government Employees. It has to be mentioned at this point that all the federations had presented demands to the Government to raise the minimum basic pay to Rs. 10,000.

Exactly how did the Government arrive at 1.86? Here is an explanation how –

Let us assume the Basic Pay, as of 01.01.2006, as 100%. Let’s take the Dearness pay (post the 50% DA Merger) as 50%. Let us also take into account the 24% Dearness Allowance that was given before 01.01.2006.

If you add Basic Pay and Dearness Pay and calculate 24% of it, then you’d get 36%. (100 + 50 = 150 / 24 x 100 = 36)

100% + 50% + 36% = 186%

This number is being taken for calculations as 1.86.

At the time of 6th CPC Pay Fixation, the last drawn Basic Pay under 5th CPC was multiplied by 1.86 and rounded off. It was also explained that a new entity named Grade Pay was created and a sum total of this was the new Basic Pay.

Hence, it was impossible to consider 1.86 as the true yardstick. For example, for a basic pay of Rs. 3050…

3050 x 1.86 = 5680 (After rounded off)
Corresponding Grade Pay for 3050 is 1900,
Band Pay 5680 + Grade Pay 1900 = Basic Pay 7580
5th CPC basic pay = 3050
6th CPC basic pay = 7580

The multiplication factor number comes to 2.48.

It is not possible to take 2.48 as common for all basic pays. But, 2.48 was considered very low. That’s why we have used a bigger number to calculate in the 7th CPC’s Expected Pay Scale.

Source:  http://90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/04/did-you-know-how-6th-cpc-multiplication.html]

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Proposals of Enhancement of Retirement age and Merger of D.A may not materialize

It was learnt from the sources close to the Union Government that the proposals of Enhancement of Retirement age of Central Government Employees from 60 to 62 years and Merger of D.A to basic pay may not be materialized now before General elections.

Accordingly, these two proposals have not been taken up for consideration by the union Cabinet in its meeting held on friday. But there is possibility to announce Interim Relief (I.R) before elections.

Source: www.postalinspectors.blogspot.in
[http://postalinspectors.blogspot.in/2014/02/proposals-of-enhancement-of-retirement.html]

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CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
CENTRAL HEADQUAERTERS

DHARNA AT JANTAR MANTAR NEW DELHI
ON 24.02.2014 GRAND SUCCESS

POLICE REFUSE PERMISSION TO CONDUCT DHARNA ON THE SECOND DAY.

As per the decision of the National Secretariat of the Confederation of Central Government Employees & Workers a mass dharna was conducted at Jantar Mantar (Parliament Street) New Delhi, to protest against the negative attitude of the UPA Govt. and Finance Minister Shri P. Chidambaram towards the 15 point charter of demands of the Central Government Employees, including DA merger, Interim Relief, inclusion of GDS under 7th CPC, Date of effect 01.01.2014 etc. Even in the Budget (Vote on account) presented by the Finance Minister in Parliament there is no mention about any of the Central Govt. Employees demands.

 Even though the dharna was scheduled for two days; it was concluded in the first day evening itself, as the Delhi Police denied permission for the Second day.(See Police Order below)Com. KKN Kutty, National President of the Confederation inaugurated the dharna. He declared that Confederation has decided to go fo an indefinite strike, immediately after election, if the Govt. is not ready to concede our demands. He congratulated all the Central Govt. Employees who made the Feb 12th & 13th two days strike a thundering success. National Convention of  the Confederation scheduled to be held at Nagpur on 4th April 2014, will decide the future course of action and also strike programme.

Com. S.K. Vyas, Advisor, Confederation, Com. M S Raja , Working Chairman, Com. Narasimhan, Vice President,Com. M. Krishnan. Secretary General,Com. Giri Raj Singh, Vice President, Com. Vrigu Bhattacharjee, Financial Secretary and General Secretary C-O-C Delhi, Com. R N Parashar, Asstt. Secretary, Com. R. Seethalaxmi G/S P-IV, Com. P. Suresh G/S R-IV, Com. A.K. Kanojia (ITEF), Coms. Harender Singh, Tirath Prakash (R-IV),  K.P. Singh (R-III),  Ami Chand , Rajesh Kumar Gautam (R-III), Balwinder Singh (P-III),  N. Subramaian (P-III),Com. K. Ragavendran, Ex, S.G., NFPE, Com. K.V. Sridharan, Ex. GS-P-3 , Com. D.K. Rahate, Ex. President, NFPE ,Com. Gita Bhattacharjee (Convernor , Women Sub Committee) and so many other Comrades from C-O-C Delhi  participated in the day long dharna.

Source:  confederationhq.blogspot.in
[http://confederationhq.blogspot.in/2014/02/confederationof-central-government.html]

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This week may bring cheer to central employees and pensioners

Central Government employees and pensioners will find reasons to celebrate this week. The union cabinet is likely to clear some long awaited demands for it’s staff in the next meeting later this week The F.M., currently on foreign tour, likely to return India on 26th February and after which cabinet meeting is likely to take place.

According to information available with us, merger of 50% D.A., an additional hike of 10% D.A. from 01.01.2014, granting of Interim Relief and enhancing retirement age to 62 years are under the consideration of Govt. and some of these are to be approved in the next cabinet meeting.

As the notification of loksabha poll may be issued in the first week of March, this would be the last cabinet meeting before the code of conduct comes into force.

So the central employees and pensioners may definitely hope for some bonanza to be announced this week.

Source: www.paycommissionupdate.blogspot.in
[http://paycommissionupdate.blogspot.in/2014/02/this-week-may-bring-cheer-to-central.html]

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Any possible to convert 50% of dearness allowance to dearness pay..!

Everyone’s pointing fingers at “Parliament Election”…!

50% DA MERGER

50% of dearness allowance had been merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004. This was followed the recommendation of 5th Central Pay Commission and the Union Government had decided to merge 50% of dearness allowance with baisc pay and issued orders on 1.3.2004.  (61% – 50% = 11%) 50% of dearness allowance merged with basic pay and remaining 11% had been issued as normal dearness allowance with effect from 1.1.2004.

“Note that the 50% of Dearness allowance will not merged with basic pay, instead of the amount showing only as ‘Dearness Pay’. This amount will pay upto only the date of implementation of 7th pay commission. 

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/50-da-merger/]

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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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General Secretary of Confederation for Karnataka State Shri P.S.Prasad has written an article on his blog about the Consumer Price Index for the purpose of calculating Dearness allowance to Central Government employees and Pensioners…

The detailed report of article has been reproduced and given below for your information…

DA & CPI UNDER ATTACK

The Consumer Price Index is the main base for calculation of Dearness Allowance for the Central Government and State Government Employees and also the Industrial and Bank Employees.

a) Housing should be given as 15% instead of just 9.77 %.

b) Medical should be increased to 15% from 5.31 %.

c) The Miscellaneous items should be reduced to just 5% instead of 26.31 %

1) There is vast difference between the real price increase and CPI thus an Employee is deprived of the real DA.

2) The Government of India is thinking that the CPI is bloated or wrong that has made burden on the financial burden on them hence it wants to reduce its expenditure by modifying the CPI as a result of this what DA we used to get 10% half yearly and this year by 20%, this can be avoided by next year, hence it is seriously considering the aspect of revising the All India weights of many items such as food which is at 59% to 30%. By this the whole CPI increase will be limited to just 8 to 9 points in a year rather than 25 points in a year by this we get only 3 to 4 % DA every six months rather than 10% DA which we are used to get due to high inflation and drastic rise in prices.

From the above it is quite clear there is no weightage for rural housing & Miscellaneous weightage is much more than required.
Which is effecting DA calculation.

List of 252 Items

[http://karnatakacoc.blogspot.in/2013/09/da-cpi-under-attack.html]

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Generally, Central Government announces DA for the employees twice in a year, effecting on January and July. But the last announcement for DA, came only in April and it was 8% and the total DA was 80% of the basic pay. As per the AICPIN calculations for the last six months, (from January to June 2013) DA is to be fixed at 10%. Employees are eagerly awaiting for the announcement of the same in September itself without any delay from the government. This is the second time that the DA will be 10% after the 6th CPC came into effect. This clearly shows the price rise for essential commodities in India. The state government employees also awaits for the announcement. Let us hope that the government announces the DA in second week of September after their cabinet meeting and discussions.

Source: http://www.govtempdiary.com/2013/08/expected-announcement-of-da-of-10-in-september-2013/

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While answering to a question raised by our Hon’ble Member of Rajya Sabha Shri. Sardar Balwinder Singh Bhundar, the Minister of State in the Ministry of Finance (E and FS) Shri.NamoNarain Meena replied in a written form on 7th May, 2013 that 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.

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’.

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