MERGER OF 50% DA Archives - CENTRAL GOVERNMENT EMPLOYEES NEWS

5th CPC DA Revised to CPSE Employees following CDA pattern pay scales, who are governed by HPPC

admin — Thu, 26 Aug 2021 16:55:05 +0000

CPSE DA from July 2021 – 5th CPC DA Revised to CPSE Employees wef 01.07.2021

No. 2(42)/97-DPE (WC) -GL-VII/21
Government of India
Ministry of Finance
Department of Public Enterprises
Public Enterprises Bhawan

Block 14, CGO Complex, Lodi Road,
New Delhi-110003, the 24th August, 2021

OFFICE MEMORANDUM

Subject: Payment of DA to the CDA pattern employees of CPSEs on 5th CPC pay scales governed by HPPC recommendations w.e.f. 01.07.2019 -reg.

The undersigned is directed to refer to DPE’s OM No. W-02/0038/2017- DPE(WC)-GL-IX/20 dated 28.04.2020 regarding freezing of Dearness Allowance to employees of CPSE following CDA pay scales at current rates till 30.06.2021 and Para No. 2 and Annexure-III to this Department’s O.M. dated 24.10.1997 wherein the rates of DA payable to the employees of CPSEs following CDA pattern pay scales, who are governed by HPPC recommendations had been indicated.

2. In continuation of this Department’s OM of even number dated 29.10.2019, the rates of Dearness Allowance payable to the employees of CPSEs governed by the recommendations of HPPC, which have not revised their pay scales in terms of DPE O.M. No. 2(54)/2008-DPE(WC) dated 14.10.2008 may be as follows:-

a) In case of CPSEs who have not allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 362% to 406% w.e.f. 01.07.2021.
b) In case of CPSEs who have allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 312% to 356% w.e.f. 01.07.2021.

3. The above increase subsumes the additional installments arising on 01.01.2020, 01.07.2020, and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 312%, where the benefit of merger of 50% of DA has been allowed and at 362% where the benefit of merger of 50% of DA has not been allowed.

4. The payment of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. All administrative Ministries/ Department of Government of India are requested to bring the foregoing to the notice of the Central Public Sector Enterprises under their administrative control for necessary action at their end.

(Samsul Haque)
Under Secretary

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Merger of 50% DA, Retirement age Order news goes viral in Social Media

admin — Tue, 05 May 2015 16:35:05 +0000

Order for Merger of 50% DA, Retirement age news goes viral in Social Media

Recently rumour mill went overdrive in social media with the following news that

1.central government decided to Merge 50% DA with basic pay with effect from 1.1.2015 and order will be issued within 15 days

2. Encashment of Earned Leave to be curtailed to 180days instead of existing 300 days.

3.It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier

According to the Social Media , the above strong decisions were taken in last three meeting of cabinet committee to recommend 7th pay commission. Further the post published in social media warned the central government employees that if above decisions are implemented; they should not expect more from 7th Pay Commission. Since it is considered to be the indication of what the think tank of central government will do for its employees.

We enquired about this rumour with one of the Member to the National council JCM, who recently met the 7th Pay Commission. According to him, the central government has firm on its decision not to accept the Merger of DA with Pay, since the due date of the 7th Pay Commission to submit its recommendation is nearing and the central government in many occasions cleared that the recommendation of 7th pay commission will be implemented from 1.1.2016. So there is no question of issuing order for merger of 50% DA with effect from 1.1.2015.

Further he clarified that the present government wanted to use the man-hours of central government employees productively by introducing new systems like bio metric attendance etc. Hence curtailing EL Encashment will lead the central government employees to take more leave if it is not allowed for encashment. So there is no need to implement such proposal as government point of view is against taking leave by Govt officials.

There is mixed response from the sources whether the retirement age of central government employees will be revised or not. It is believed that the present government is in favour of reducing retirement age to 58. But at the same time government doesn’t want loose resources of knowledge gained through experience by reducing retirement age of Government employees. Since the work culture of government service is deteriorating day by day due to various factors , govt would like to retain the experience of the senior Government officials . Anubhav is the one of the initiative introduced by the central government to improve the work culture of youngsters in government service. So there will not be any change in retirement age of central government employees at present.

Source:www.gservants.com

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National Council Writes to Finance Minister to Consider Merger of DA with Pay

admin — Thu, 05 Jun 2014 02:21:20 +0000

National Council (Staff Side)

Shiva Gopal Mishra
General Secretary

Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001

I personally and on behalf of the Staff Side of the National Council(JCM) and on behalf of All India Railwaymen’s Federation congratulate on your taking over as Union Finance Minister.

I hope that, under your able leadership, the financial health of our country will achieve greater heights.

As you may be kindly aware, Joint Consultative Machinery (JCM) Scheme is in operation in Government of India with the object of promoting harmonious relations and of securing the greatest measure of cooperation between the Central Government, in its capacity as employer and the general body of its employees in matters of common concern, and with the object, further, of increasing the efficiency of the public services. The Joint Consultative Machinery (JCM) consists of the Official Side and the Staff Side.

We, as Staff Side, have raised a number of issues with the government, concerning the employees of the Government of India. Two of these issues are agitating the minds of the Government employees and need urgent resolution. These relate to Merger of Dearness Allowance with Pay and removal of the issue relating to Senior Promotee employees drawing less pay than the Junior Direct Recruit employee. Since these issues need decision at the level of Ministry of Finance, I am enclosing brief notes on the same for your kind perusal.

We are hopeful that, you will be kind enough to have them examined in a positive-manner

I would also be grateful, if you could spare some time from your busy schedule between 10th and 12th ” June, 2014, so that I may call on you to meet you in person.

With regards!
Yours sincerely,
Shiv Gopal Mishra

To
Shri Arun Jaitley,
Hon’ble Minister of Finance,
(Government of India),
North Block,
New Delhi

End: As above
Copy to: All Constituent Organizations of the NC/JCM(Staff Side) — for information

MERGER OF DA WITH PAY

The wage revision of the Central Government employees is carried out through the Central Pay Commissions which, considering the magnitude of employees is a time consuming process. The 7 Central Pay Commission (CPC) set up by the Government will require a reasonable time frame to go into the matter judiciously especially because the implementation of 6m CPC recommendations have given rise to large number of issues and cadre related grievances.

During the past, the methodology adopted for compensating the erosion in the real value of wages due to price rise as reflected in high rate of DA to Government employees before the date of the submission of Pay Commission Report and its acceptance by the Government, had always been though the mechanism of merger of a portion of DA with Pay. The merger of DA to partially compensate the erosion in the real wages was first done in pursuance of the Gadgil Committee in the post 2nd Pay Commission period. The 3 CPC had recommended such merger of the DA when it crossed 36%, The Government agreed to merge 60% and later the whole of the DA before the 4°’ CPC was set up. The 501 CPC merged 98% of DA with pay. The 51h CPC had also recommended that the DA must be merged with pay and treated as pay for computing all allowances as and when the percentage of Dearness compensation exceeds 50%. Accordingly even before the setting up of the 6°’ CPC the DA to the extent of 50% was merged with pay.

Presently, the factual position is that as on 1.1.2014, the Dearness compensation is 100% and will exceed the same with effect from 1.7.2014. Since the 7°’ CPC has been set up and one of the issues to be dealt with by the CPC would relate to revision in the existing reference base of price index, it becomes all the more necessary that the Government takes steps to merge at least 50% of DA with pay to compensate the erosion of the real value of wages immediately.

ISSUE RELATING TO SENIOR PROMOTEE EMPLOYEES DRAWING LESS PAY THAN THE JUNIOR DIRECT RECRUIT EMPLOYEES

The main issue in this case is that the 6th CPC for the first time recommended specific entry level pay for Direct Recruits (DRs). This resulted in employees who were appointed in service prior to the DRs and also got promoted earlier get less pay as compared to their counterparts recruited directly and who joined after 1.1.2006. It has always been the case that on promotion, the pay of a promoted employee is never fixed at less than the entry level of pay of that post as admissible to a direct recruit.

Consequent upon implementation of the recommendations of the 6th CPC, in respect of pay scales of various categories of staff, there are certain situations where the senior who were promoted before 01.01.2006 are getting lesser pay than their juniors promoted after 01.01.2006, on fixation of their pay w.e.f. 01.01.2006. This, being a serious anomaly, has been raised by us in the National Anomalies Committee for redressal thereof.

The consensus decision in the National Anomaly Committee was that the Staff Side as well as the Official Side agreed that wherever there is a provision of direct recruitment in the Recruitment Rules, pay on promotion would be fixed at the prescribed minimum of the Entry Pay as provided for the Direct Entrants in the Revised Pay Rules, irrespective of the fact whether direct recruitment has actually taken place or not. However to our distress it was later on learnt that the Government went back on this mutually agreed solemn resolution and did not issue any Order in this regard. This being a serious issue has resulted in discontentment prevailing among the seniors who are drawing less pay than is legitimately due to them.

A very simple solution to this issue is that orders may be issued to the effect that the pay on promotion w.e.f. 01.01.2006 would not be fixed less than at the prescribed minimum of the Entry Pay as provided for the Direct Entrants in the Revised Pay Rules, to eliminate this unfairness.

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Merging of DA with basic pay of Central Government employees – Rajya Sabha News

admin — Sat, 05 Apr 2014 08:29:59 +0000

Merging of DA with basic pay of Central Government employees – Rajya Sabha News

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-2062

ANSWERED ON-11.02.2014

Merging of DA with basic pay of Central Government employees

2062 . SHRI PRABHAT JHA, ARVIND KUMAR SINGH, KUSUM RAI

Will the Minister of FINANCE be pleased to state:

(a) whether Government is actively considering to merge existing dearness allowance payable to Central Government Employees with basic pay;

(b) if so, the details thereof, and if not, the reasons therefor;

(d) if so, the details thereof and the details of action taken thereon; and

(e) the reasons for delay in constitution of 7th Central Pay Commission?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
( SHRI NAMO NARAIN MEENA)

(a) No Sir.

(b) The 6th Central Pay Commission did not recommend merger of Dearness Allowance with basic pay at any stage. This has been accepted by the Government vide Resolution dated 29th August, 2008.

(c)&(d) A number of representations have been received from Associations/Organizations of Central Government Employees demanding merger of 50% of Dearness Allowance with basic pay. However, in view of (b) above, the same has not been agreed to.

(e) The Government has already decided to constitute the 7th Central Pay Commission under the Chairmanship of Justice Ashok Kumar Mathur, Retired judge of the Hon’ble Supreme Court.

Source: http://rajyasabha.nic.in/

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50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..!

admin — Tue, 25 Feb 2014 02:43:07 +0000

50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..!

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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50% DA MERGER – Impact of Merger of 50% Dearness Allowance with Basic Pay

admin — Tue, 25 Feb 2014 02:37:26 +0000

50% DA MERGER – Impact of Merger of 50% Dearness Allowance with Basic Pay

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.

Example : An employee’s Basic Pay had revised as under on 1.1.2004 after 50 % DA merged with basic pay…

Basic Pay	Dearness allowance 61%	Total	Basic Pay	Dearness Pay	Remaining percentage of Dearness allowance 11%	Total	Difference
4000	2440	6440	4000	2000	660	6660	220

[And the next instalment of additional dearness allowance from 1.7.2004 declared as 3%, then the total dearness allowance went up to 14%. When implementation of 6th CPC, the above employee’s basic pay was 4200 as on 1.1.2006, it just multiply with 1.86 and add with corresponding grade pay.]

Everybody thinking as more benefit on 50% of DA merge with basic pay…not like that..!

It is essential to CG Employees, of course for others, getting from some other way in hike in regular income…

For Example, an employee’s basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the calculation is clearly shows the difference only 50 rupees per month…

Basic Pay	Dearness allowance 51%	Total	*Basic Pay*	*Dearness Pay*	*Remaining percentage of DA 1%*	*Total*	*Difference*
10,000	5100	15100	10000	5000	150	15150	50

“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.

This is only as a advance hike for all employees before the implementation of 7th CPC.

When fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the revised pay rules, the amount of ‘basic pay’ will be taken without dearness pay.

For example, approximately basic pay of the above employee will be 12,250 as on 1.1.2016 . This amount only will be taken as Basic Pay for the calculation of pay fixation against the amount of 18,375.

The enhanced amount will be given for us as ‘Interim Relief’ for the period between announcement and implementation…It is not at all merged with ‘Basic Pay’..!

We can hear, what about hike in HRA and other entitlements…

The rate of HRA is provided according to the cities, like 10, 20 and 30%. Don’t think all Central Govt Employees are getting 30%. And one more important points is the percentage hike in HRA will not applicable to those who are living in Government Quarters. In major metropolitan cities, thousands of employees are residing with Government Accommodation. They will pay more as HRA to Government and they don’t bother about increasing in HRA.

Transport Allowance is providing according to their GP and classified cites, the amount is vary from 400 to 3200 plus DA thereon. The TA amount may decrease when 50% of DA merged with basic pay.

So, ultimately hike in Basic pay only the factor is more beneficial in DA Merger.

But in 6th CPC there was no recommendation to convert dearness allowance as dearness pay each time the CPI increase by 50% over the base index recommended in pay commission report.

All Central Government employees federations are showing maximum effort to achieve the demand of “Merger of 50% Dearness Allowance with Basic Pay” at this time.

Federations sources said, there will be chance to announce before March…!

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

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Merger of 50% DA with Pay and grant of Interim Relief – NFIR

admin — Fri, 21 Feb 2014 01:47:48 +0000

Merger of 50% DA with Pay and grant of Interim Relief – NFIR

NFIR
National Federation of Indian Railwaymen

No.II/95/Pt. VI

Dated: 20/02/2014

The General Secretaries of
Affiliated Unions of NFIR.

Brother,
Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation.

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

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Cabinet approved terms of reference for 7th CPC, including merger of 50 per cent DA with basic pay

admin — Thu, 20 Feb 2014 10:14:55 +0000

Cabinet approved terms of reference for 7th CPC, including merger of 50 per cent DA with basic pay

As per Hindu Businessline News the Cabinet approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. The excerpt of Hindu Businessline News is reproduced below:-

Ahead of general election, the Centre today took key decisions to woo minorities and Government employees.

For minorities, the Cabinet has decided to form equal opportunity commission as suggested by Sachhar Committee. This commission will suggest ways to ensure equal opportunities in jobs, education and even finding house on rent for minorities. The commission is expected to be constituted soon.

Terms of reference for 7th pay commission

In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Cabinet also approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. Currently DA is around 90 per cent of basic pay and another hike of 10 per cent is expected soon. DA is calculated on the basis of change in retail inflation.

Source: Hindu Business Line
http://www.thehindubusinessline.com/economy/policy/cabinet-okays-setting-up-of-equal-opportunity-commission-coal-regulator/article5708924.ece

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Inclusion of DA Merger and Interim Relief in 7th CPC ToR – Cabinet likely to approve 7th CPC ToR

admin — Thu, 20 Feb 2014 10:02:15 +0000

Inclusion of DA Merger and Interim Relief in 7th CPC ToR – Cabinet likely to approve 7th CPC ToR

Inclusion of DA Merger and Interim Relief in 7th CPC Terms of Reference – Union Cabinet likely to approve the 7th CPC Terms of Refernce in the next meeting, media sources said.

“To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per cent dearness allowance (DA) with basic pay of employees.

This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.

According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.

The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.

Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.

DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.

Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.

The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).

The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.

The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.

Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development”.

Source: www.business-standard.com
http://www.business-standard.com/article/economy-policy/centre-plans-big-bonanza-for-central-govt-employees-114021901256_1.html]

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Confederation News on composition of 7th CPC – Seventh CPC constituted, but No DA Merger

admin — Wed, 05 Feb 2014 14:35:31 +0000

Confederation News on composition of 7th CPC – Seventh CPC constituted, but No DA Merger

FIRST IMPACT OF TWO DAY’S STRIKE NOTICE

SEVENTH CPC CONSTITUTED. BUT NO DA MERGER

NO INTERIM RELIEF. NO MENTION ABOUT GDS.

NO CHANGE IN DATE OF EFFECT.

NO DISCUSSION WITH STAFF SIDE.

NO LABOUR REPRESENTATIVE IN PAY COMMISSION.

CONFEDERATION NATIONAL SECRETARIAT DECIDED TO GO AHEAD WITH THE 48 HOURS STRIKE.

NO COMPROMISE ON MAIN DEMANDS

CONDUCT INTENSIVE CAMPAIGN AND MAKE THE STRIKE TOTAL.

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

The Finance Minister Shri P. Chidambaram has issued the following statement:

“The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1. Shri Justice Ashok Kumar Mathur – Chairman

(Retired Judge of the Supreme Court and Retired

Chairman, Armed Forces Tribunal)

2. Shri Vivek Rae – Member (Full Time)

(Secretary, Petroleum & Natural Gas)

3. Dr. Rathin Roy – Member (Part Time)

(Director, NIPFP)

4. Smt. Meena Agarwal – Secretary

(OSD, Department of Expenditure,

Ministry of Finance)”

*****

DSM/MJPS/KA

(Release ID :102978) PBI(04.02.2014)

Source: www.confederationhq.blogspot.in

[http://confederationhq.blogspot.in/2014/02/first-impact-of-two-days-strike-notice.html]

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