NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI -110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. IV/ RSAC/ 2021

Dated: 30/03/2021

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Merger of Dearness Allowance with the Basic Pay w.e.f. 01/04/2004 – Computation of emoluments of Running Staff for granting retirement benefits – reg.

Ref: (i) NFIR’s PNM item No.23/ 2017.
(ii) GM/N.Rly’s letter No.720/ EW/ Misc/ Union-items/ 2015/ E.IV/ Loose dated 16/11/2015.
(iii) Railway Board’s letter No.E (P&A) II-2014/ RS-24 dated 24/08/2016 addressed to General Manager/ P, Northern Railway.
(iv) NFIR’s letter No.IV/ RSAC/ Conf./ Pt.VII dated 05/09/2016.
(v) Railway Board’s letters No.E(P&A)II-2014/ RS-24 dated 22/07/2016, 04/10/2016 & 17/10/2016.
(vi) NFIR’s letter No.IV/ RSAC/ 2018 dated 16/08/2019.
(vii) NFIR’s letter No.IV/ RSAC/ 2020 dated 11/03/2020 & 07/05/2020 to Railway Board.
(viii) NFIR’s letter No. IV/ RSAC/ 2020 dated 13/10/2020.

Kind attention of Railway Board is invited to NFIR PNM Item No. 23/2017 and references cited above.

Despite discussions with the Official Side of the Railway Board (Pay Commission and Finance Directorates), the issue continues to remain pending even after a lapse of over three years. The Running Staff are extremely unhappy over Railway Board’s indifferent attitude in deciding this genuine issue. During a separate discussion with the CRB on 26/03/2021, NFIR representatives have also mentioned this pending subject concerning this critical safety category (Running Staff) leading to dissatisfaction among them.

Pay fixation of running staff in 7th CPC – Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004

NFIR, therefore, urges to arrange a separate meeting at the level of DG (HR) or Additional Member (Staff) soon for discussing the subject for finalization.

Yours faithfully,

(Dr. M. Raghavaiah)
General Secretary

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Charter of Demands (Important Points) including

• Scrap NPS, Scrap the draconian FR 56(j) and Rule 48,
• Withdraw DA and DR freezing orders,
• Appoint 8th Central Pay Commission and revise the Pay, Allowances and Pensionary benefits,
• Increase 7th CPC minimum pay and fitment formula,
• Withdraw “Very Good” bench mark for MACP,
• Stop ban on creation of new posts,
• Stop Corporatisation and privatisation of Railways,
• Defence and Postal Departments,
• Grant equal pay for equal work for all,
• Merger of DA

REVISED CHARTER OF DEMANDS

(Submitted for approval of the National Executive Committee meeting to be held on 26-09-2020)

1. Scrap New Contributory Pension Scheme (NPS). Restore old defined benefit Pension Scheme (OPS) to all employees. Guarantee 50% of the last pay drawn as minimum pension.

2. (a) Scrap the draconian FR 56(j) and Rule 48 of CCS (Pension) Rules 1972. Stop terrorizing and victimizing employees.

(b) Withdraw the attack against the recognised status of Associations and Federations.

(c) Withdraw the anti-worker Wage/Labour codes and other anti-labour reforms.

(d) Stop attack on trade union rights.

3. (a) Withdraw the orders freezing the DA and DR of employees and Pensioners and impounding of arrears till 30.0-.2021.

(b) Implement five year wage revision and Pension revision to Central Government employees and Pensioners. Appoint 8th Central Pay Commission and revise the Pay, Allowances and Pensionary benefits of Central Government employees and Pensioners with effect from 01-01-2021.

(c) Honour the assurance given by Group of Ministers (GoM) to NJCA leaders on 30-06-2016. Increase minimum pay and fitment formula recommended by 7th CPC. Grant HRA arrears from 01-01-2016.

(d) Withdraw “Very Good” bench mark for MACP, grant promotional heirachy and date of effect of MACP from 01-01-2006.

Also check: MACP ON PROMOTIONAL HIERARCHY – MACP Supreme Court Order – Heard & Reserved 

(e) Grant Option-1 parity recommended by 7th CPC to all Central Govt. Pensioners. Grant one national increment to those who retired on 30th june.

(f) settle all anomalies arising out of 7th CPC implementation.

4. Stop ban on creation of new posts. Fill up all seven lakhs vacant posts in Central Government departments in time bound manner. Scrap National Recruitment Agency and introduce Department wise recruitment and Regional recruitment for Group B and C posts. Stop re-engaging retire personnel in Central Govt. services.

5. Stop Corporatisation and privatisation of Railways, Defence and Postal Departments. Withdraw closure/ merger orders of Govt. of India Printing Presses and Postal Stores depots/ Postal Stamp depots. Stop proposed move to close down salt department. Stop outsourcing and closure of Govt. establishments.

Also check: Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004

6. (a) Regularisation of Gramin Dak Sevaks and grant of Civil Servants status. Implement remaining positive recommendations of Kamalesh Chandra Committee Report.

(b) Regularise all casual and contract workers including those joined service on or after 01-09-1993.

7. Settle all Covid-9 related issues pertaining to Central Govt. employees and Pensioners on top priority basis. Treat the period of absence during lock down as duty. Grant full wages to casual, part-time, contingent contract workers during the lockdown period.

8. Grant equal pay for equal work for all. Remove disparity in pay scales between Central Secretariat staff and similarly placed staff working in field units of various departments.

9. Implement 7th CPC wage revision and pension revision to remaining Autonomous body employees and pensioners. Ensure payment of full arrears without further delay. Grant Bonus to Autonomous body employees pending from 2016-17 onwards.

10. Remove arbitrary 5% ceiling imposed on compassionate appointments. Grant appointment in all eligible cases.

11. Grant five time-bound promotions to Group B & C employees. Complete cadre review in all departments in a time bound manner.

12. Ensure prompt functioning of various negotiating forums under the JCM Scheme at all levels.

Source: confederation

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Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004

No.IV/RSAC/2020

Dated: 11/03/2020

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Merger of Dearness Allowance with the Basic Pay w.e.f. 01/04/2004 – Computation of emoluments of Running Staff for granting retirement benefits -reg.

Ref: (i) NFIR’s PNM Item No. 23/2017.
(ii) GM/N. Rly’s letter No. 720/ EW/Misc/ Union-Items/2015/E.IV/ Loose dated 16/11/2015.
(iii) Railway Board’s letter No. E(P&A)II-2014/RS-24 dated 24/08/2016 addressed to General Manager (P), Northern Railway.
(iv) NFIR’s letter No. IV/RSAC/ Conf/Part VII dated 05/09/2016.
(v) Railway Board’s letters No. E(P&A)II-2014/ RS-24 dated 22/07/2016, 04/10/2016 & 17/10/2016.
(vi) NFIR’s letter No. IV/RSAC/ 2018 dated 16/08/2019.

Federation invites kind attention of the Railway Board to the minutes of special meeting held between NFIR representatives and EDPC-I, Railway Board on 04/06/2019 relating to PNM Agenda Item No. 23/2017. When Federation explained the case and urged that the instructions issued by Northern Railway vide letter dated 16/01/2015 to its Divisions be restored and accordingly conveyed to Zonal Railways, the Official Side agreed to consider and take action for issuing clarificatory instructions. But however, there has been no positive action despite several months.passed.

This subject has again been discussed by NFIR with EDPC-I on 27/01/2020 and with EDFE on 05/02/2020 who agreed to issue clarification to the General Manager, Northern Railway for restoration and implementation of earlier instructions dated 16/11/2015. Though more than a month has passed, the clarification has not been issued yet, while the PNM item is pending since over 2 and 1/2 years.

Also check: Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 – Reckoning as pay for running staff

NFIR, once again requests the Railway Board to kindly issue clarification to the General Manager, Northern Railway for restoration of his instructions dated 16/11/2015, duly endorsing copy to the Zonal Railways and to the Federation.

Yours faithfully,
(Dr. M. Raghavaiah)
General Secretary

Source: NFIR

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

E(P&A)II-2012/DC/JCM/1

New Delhi, Dated 17.10.2016

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110055

Sub: Merger of Dearness Allowance with the Basci Pay w.e.f. 01.04.2004 – computation of emoluments of Running Staff for granting retirement benefits – reg.

Ref: NFIR’s letter No.IV/RSAC/Conf./Part VII dated 05.09.2016

I am directed to refer to your letter dated 05.09.2016 wherein the Federation has mentioned that Northern Railway has vide letter 720/EW/Misc/Union-Items/2015/E.IV/Loose dated 16.11.2015 correctly computed the emoluments of Running Staff with reference to Dearness Allowance and 30% thereon for the purpose of allowing the retirement benefits to those Running Staff who had retired during the period 01.04.2004 and 31.12.2005.

The matter has been examined in Baord’s office and its observed that the methodology for computation contained in Northern Railway’s letter referred to above, is not in conformity with the instructions on the matter as laid down in Baord’s letter No.E(P&A)II-2004/RS-13 dated 12.10.2004, Northern Railway has accordingly been advised to take immediate corrective action in the matter vide Board’s letter No.E(P&A)II-2014/RS-24 dated 22.07.2016.

Yours faithfully,
sd/-
For Secretary/Railway Board

Source: NFIR

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DA from July 2016 set to increase by 6% or 7% on the basis of All India Consumer Price Index (Industrial Workers) with base year 2001=100, for Pre revised Pay (Pay prior implementation of 7th Pay Commission)

DA from July 2016 – An analysis – Labour Bureau, Govt of India has released the Consumer Price Index (IW) for the month of April 2016.

Having actual All India Consumer price index for 10 months in hand, out of AICPI-IW needed for calculation of DA, an attempt has been made here to estimate the said DA from July 2016.

This DA estimation is based on Consumer Price Index (IW) with the base year 2001=100 which is being followed presently for calculation of Dearness Allowance applicable for Central Government Employees, Defence personnel and Pensioners.

7th Pay Commission has also recommended that the same consumer price Index could be retained for granting Dearness Allowance.

Here is the extract of analysis and recommendations of 7th Pay Commission relating to Dearness Allowance

“The VICPC had recommended that the National Statistical Commission may be asked to explore the possibility of a specific survey covering government employees exclusively, so as to construct a consumption basked representative of government employees and formulate a separate index. This has, however, not been done.

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.”

Hence, it is assumed that CPI-IW with the base year 2001=100 would be followed with effect from January 2016 on implementation of 7th Pay commission report as far as Dearness Allowance is concerned.

In that case, DA from July 2016 after implementation of 7th Pay Commission has to be calculated using the following DA Calculation Formula

[ (Average of Consumer Index for the period from July -2015 to Jun-16) – (Average All India Consumer Price Index for 2015) X 100] / Average All India Consumer Price Index for 2015

Based on the above formula, after merger of DA of 125% with Basic Pay, DA from January 2016 would be calculated as 0% and Likely DA from July 2016 after implementation of 7th Pay Commission will be 2% or 3%

DA from July 2016 for Pre-Revised Pay

CPI-IW from July 2015 to April 2016

Scenario 1: Possibility of increase in DA from July 2016 for Pre-Revised Pay working out to be less than 6%

Possibility of increase in DA from July 2016 working out to be less than 6% is very remote due to the fact that the index should be getting reduced by at least 4 points in any one of the coming two months from the previous month and further reduction of at least 3 points in the other month.

In other words index for May 2016 should be getting reduced by 4 points to 267 and also witness further reduction by 3 points to 264, for increase in DA from July 2016 less than 6%. If index for May 2016 registers not more than 3 point reduction then index for June 2016 has to reduce at least by 4 points in order get the less than 6% increase in DA from July 2016

Calculation of DA from July 2016 based on CPI(IW) from July 2015 to June 2016

Scenario 2: Possibility of increase in DA from July 2016 for Pre-Revised Pay working out to be 6%

Even if index gets lower by 3 points during both of these months compared to previous month, viz., May 2016 registers 3 point reduction from April and further three point reduction in June 2016 compared to May 2016, increase in DA from July 2016 will be 6%.

We are of the opinion that increase in DA from July 2016 registering at least 6% is quite possible as chances for CPI (IW) getting reduced to less than 265 from the present level 271 in two months is very remote.

Scenario 3: Possibility of increase in DA from July 2016 for Pre-Revised Pay working out to be 7%

If CPI (IW) gets increased at least by 2 points in any one of the coming two months and by 1 point increase in the other month compared to previous month, then DA from July 2016 will be poised for an increase of 7%.

In other words, if consumer price index for May 2016 and June 2016 witnesses at least 2 point increase and further 1 point increase respectively or vice versa, increase in DA from July 2016 is calculated to be 7%

Considering the inflationary trend shown by 3 point increase in April 2016, this scenario may become a reality. In that case DA from July 2016 will be 7%

Scenario 4: Possibility of increase in DA from July 2016 for Pre-Revised Pay working out more than 7%

In order to get an increase in DA from July 2016 more than 7%, CPI(IW) for both May 2016 and June 2016 should witness at least 7 point increase from the present level of 271. If any one of this month registers lesser increase than 7 points then the other month has to compensate the same by registering increase of index by more than 7 points.

It is apparent that possibility for such an increase in CPI(IW) is not at all Possible. Hence we can conclude that increase in DA from July 2016 may not be more than 7%

Source: gconncect.in

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In addition to the various genuine demands raised by the various Central Government Employees Federations/Associations with the Empowered Committee of Secretaries, I would like them to bring these 2 important crucial issues before the Empowered Committee of Secretaries for implementation:

1. RETENTION OF 3% INCREMENT IN VII CPC RECOMMENDATIONS IN CASE OF PROMOTION LEADS TO LOWER FINANCIAL BENEFITS BY FEW THOUSANDS THAN THE EXISTING BENEFITS UNDER 6TH CPC RECOMMENDATIONS:

The financial benefit would be much lower than what a government servant would be getting under VI CPC recommendation on promotion, because the existing benefit on promotion carry change in grade pay apart from 3% increase in Pay+Grade Pay. The following illustration shall show the huge difference:

Suppose an employee whose Pay is Rs.10400/- and the Grade pay is Rs. 2800/- totalling to Rs.13200(in the Pay band of 5200-20200), gets his next promotion to the Grade Pay of Rs.4200/- he will be entitled to the following hike in total remuneration under the existing VI CPC recommendation as a result of promotion:

Rs.13200 x 3% increment =Rs.400
Difference in Grade Pay from Rs.2800 to Rs.4200= Rs.1400
Total increase of increment in basic pay and Grade Pay= Rs.1800
D.A. at 125% as on 1/1/2016 on Rs.1800 = Rs.2250
HRA at 30%(assuming X city) on Rs.1800 =Rs.540
Total monetary benefit = Rs.4590/-

Whereas the net monetary benefit under VII CPC recommendation, as a result of promotion in the above case will be much lower than the above illustration as shown under:

Equivalent Basic Pay for Rs.13200 come to Rs.33900 as per pay matrix
Rs.33900 x 3% increment =Rs.1017(placed at Rs.35,400 as per pay matrix in the next level)
Total difference Rs.35400 – Rs33900 =1500
D.A. at 0% as on 1/1/2016 on Rs.1500= 0
HRA at 24%(assuming X city) on Rs.1500 =Rs.360

Total monetary benefit = Rs.1860/-only as against the existing Rs.4590/- leading to shortage of Rs. 2730/-
This is a big blunder committed by the VII Pay commission.
Therefore the increment on promotion should be atleast 5 to 6% to bring the benefit of increment on promotion to the existing level.

Whether increase of percentage for annual increment is considered or not, but increment of percentage for promotions definitely need to be implemented to bring the level of monetary benefit to the existing level.

2. NON RECOMMENDATION OF VII CPC REGARDING MERGER OF 50% OF D.A. WITH BASIC PAY WHEN D.A. CROSSES 50% IS A GREAT DISAPPOINTMENT:

The long standing demand of the central government employees for merger of 50% D.A with basic was not implemented by the government on the excuse that the VI CPC had not made such a proposal. Even the VII CPC is totally silent about this aspect. It appears no one has demanded the same before the VII CPC for consideration.

It is quite surprising that such a vital issue of non-recommendation of merger of D.A with basic pay when D.A crosses 50% is not being opposed by any central government associations or pointed out by the media. Had it been recommended by the VII CPC, the government shall definitely implement the same and the benefit of hike in salary as a result of merger of D.A with basic when it cross 50%, would be so vast that no government servant would crave for timely setting up of next VIII Central Pay commission.

M.DORAI

Via: govtempdiary

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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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Maken to sit on dharna

Delhi Pradesh Congress Committee president Ajay Maken along with a large number of party workers will sit on a daylong dharna tomorrow at Jantar Mantar seeking merger of Dearness Allowance (DA) with basic pay and also to oppose the move by the BJP-led Central Government to lower the retirement age of government employees.

DPCC chief spokesperson Sharmistha Mukherjee said party workers, government employees, teachers, pensioners and others will join Maken in the dharna to press their demand for merger of DA with basic pay and also to oppose the move to lower the retirement age of government employees.

Addressing a press conference, Mukherjee said the Congress would be seeking the merger of 100 per cent DA with basic pay, which is 113 per cent as on January 1, 2015. The Congress-led UPA II government was to take a decision on merger of DA with basic pay, but due to the announcement of the general elections, it had to be deferred.

Read more at The Tribune

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National Federation of Indian Railwaymen published a message on its official portal regarding an additional Dearness Allowance effective from July 2015 to Dec 2015 for Central Government Employees.

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi – 110 055

No.I/5(A)/Part.I

Dated: 01/08/2015

MESSAGE

With the announcement of All India Consumer Price Index for the month of June, 2015, the average stood at 254.41. Hence the Central Government Employees are entitled for D.A. at 119% of pay w.e.f.01/07/2015.

sd/-
(Dr.M.Raghavaiah)
General Secretary

Copy to all General Secretaries of affiliated Unions of NFIR.
Media Center/NFIR

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3 Points increased and pegged at 261.

As per the press release of Labour Bureau today, the All India Consumer Price Index (IW) is increased by three points from the existing level and stands at 261.

No.5/1/2015- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT’, SHIMLA-171004

DATED : 31st JuIy, 2015

Press Release

Consumer Price Index for Industrial Workers (CPI-I W) – June, 2015

The All-India CPI-IW for June, 2015 increased by 3 points and pegged at 261 (two hundred and sixty one). On 1-month percentage change, it increased by (+) 1.16 per cent between May, 2015 and June, 2015 when compared with the increase of (4) 0.82 per cent between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 2.35 percentage points to the total change. At item level, Arhar Dal, Gram Dal, Masur Dal, Urd Dal, Groundnut Oil, Mustard Oil, Fish Fresh, Eggs (Hen), Poultry (Chicken), Milk (Buffalo & Cow), Onion, Chillies Green, Ginger, Vegetable items, Petrol, etc. are responsible for the increase In index. However, this increase was restricted by Rice, Mango, Lemon, Sugar, Electricity Charges, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.10 per cent for June, 2015 as compared to 5.74 per cent for the previous month and 6.49 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 6.67 per cent against 5.99 per cent of the previous month and 5.88 per cent during the corresponding month or the previous year.

At centre level, Quilon reported the highest increase of 15 points followed by Godavarikhani (9 points) and Raniganj (7 points). Among others, 6 points inclease was observed in 4 centres, 5 points in 9 centres, 4 points in Il cenlres, 3 points in 8 centres, 2 points in 15 centres and 1 point in 11 centres. On the contrary, Ghaziabad centres recorded a maximum decrease of 2 points. Among others, I point decrease was observed in 6 centres. Rest of the 10 centres’ indices remained stationary.

The indices of 35 centres are above All India Index and other 42 centres’ indices are below national average. The index of Lucknow is at par with all-India index.

The next index of CPI-IW for the month of July, 2015 will be released on Monday, 31st August, 2015. The same will also be available on the office website www.labourbureau.gov.in.

sd/-
(S.S.NEGI)
DEPUTY DIRECTOR GENERAL

Source: www.labourbureau.nic.in

‘Expected DA from July 2015′ is finalized as hike by 6%.

Tags: AICPIN June 2015, Expected DA, Expected DA July 2015, Central Government Employees News, Merger of DA

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