Merger of Dearness allowance 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

Download 5th CPC DA Revised to CPSE Employees PDF

The post 5th CPC DA Revised to CPSE Employees following CDA pattern pay scales, who are governed by HPPC appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Merger of DA with the Basic Pay and calculation of the running Staff distributing pension retirement benefits

admin — Thu, 01 Apr 2021 03:26:59 +0000

Pay fixation of running staff in 7th CPC

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

The post Merger of DA with the Basic Pay and calculation of the running Staff distributing pension retirement benefits appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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

admin — Wed, 18 Mar 2020 11:15:28 +0000

NFIR

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

The post Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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

admin — Thu, 09 Mar 2017 14:42:32 +0000

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

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No. EP&A)-II/2006/RS-28.

New Delhi, dated 22.11.2016.

The General Secretary,
National Federation of Indian Railwaymen,
3, Chelmsford Road,
New Delhi – 110 055.

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

Ref.: (i) DC/JCM Item No. 15/2009.GS/NFIR’s letter No. IV/RSAC/Conl/Vol.VI dated 28/03/2016

Please refer to your letter dated 28.03.2016 under reference no. (ii) on the subject noted above. Iii this connection, it is mentioned that Board’s letter dated 21.10.2014 addressed to both the Federations highlighted that the basis for the exclusions was the Ministry of Finance’s OM dated 01.03.2004 on the merger of 50% DA with Basic Pay that was adopted by the Ministry of Railways. Vide letter dt. 28.03.2016, however, NFIR. has not agreed with the reply and has reiterated that the exclusions violate the IREM provision of. Running Allowance and that the OM dt. 01.03.2004 of MoF is not relevant in this connection.

For a better understanding of the logic on which the three exclusions have been made the table given below may kindly be seen:-

Clause No.	Benefit of 30% pay element (mentioned in the clause)applicable to Running Staff	Relevant wording in MoF O.M. dated 01.03.2004 pertaining to the benefit	Remarks
a	Entitlement for pass/ PTO	LTC Specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay	As Railways do not have LTC. Pass /PTO revision excluded accordingly vide RBE No.77/2008
d	Fixation in pay in Stationary Posts	Fixation of pay not included as an admisssble benefit for revision of entitlement on merger of 50% DA with Basic Pay	Counting of the benefit (of merger of DA with Basic) for Fixation of pay is an issue pertaining to all Government employees and not merely Running Staff of Railways. When this benefit has not been extended to any Government employee, it cannot be extended to Running Staff consolation. RBE No.77/2008 has been issued accordingly. As erest while Basic Pay element (without merger of 50% DA) however continued to be admissible for Fixation of pay of Running Staff in Stationary posts, there is no violation of relevant REM provision.
g	Entitlement of Quarters	Government accomadation specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay	As Railway Quarters are Government accomadation, revision of entitlement has been excluded accordingly vide RBE No.77/2008

As brought out in the table above there has been no violation of the Rules.It is therefore requested that the item may be closed.

For Secretary Railway Board

Click here to View the Full Order

The post Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 – Reckoning as pay for running staff appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Merger of Dearness Allowance with the Basic Pay – Computation of emoluments of Running Staff for granting retirement benefits

admin — Fri, 21 Oct 2016 02:46:18 +0000

Merger of Dearness Allowance with the Basic Pay – Computation of emoluments of Running Staff for granting retirement benefits

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

The post Merger of Dearness Allowance with the Basic Pay – Computation of emoluments of Running Staff for granting retirement benefits appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Central Government Employees to march Parliament on 28th, demand scrapping of NPS, merger of DA

admin — Mon, 27 Apr 2015 04:40:42 +0000

Central Government Employees to march Parliament on 28th, demand scrapping of NPS, merger of DA

Central Government employees have decided to hold a demonstration near Parliament on April 28 for bringing to notice their long-pending demands such as scrapping of the new pension scheme, merger of dearness allowance, and putting a stop to outsourcing, among others.

According to a release, the demonstration would press the long-pending demands of Central Government employees including scrapping the New Pension Scheme (NPS), merger of dearness allowance (DA) in Pay, redressal of pending anomalies of the Sixth Central Pay Commission, interim relief, scrapping foreign direct investment, and public private partnership schemes, filling of vacancies, stopping outsourcing, enhancement of the limit of bonus, and on the other side various amendments in labour laws, among others.

On the call of the National Joint Council of Action (NJCA), the Convener of NCJCA Shiva Gopal Mishra said in a release various associations will participate in the demonstration including the All-India Railway Men’s Federation, the National Federation of Indian Railwaymen, the All-India Defence Employees’ Federation, the Indian National Defence Workers’ Federation, the National Federation of Postal Employees’ Federation, the Federation of National Postal Organisation, and the Confederation of Central Government Employees. Besides, some state employees will also participate in the demonstration.

Mishra further said if the Government does not take the “united movement seriously” to resolve the issues, they would be forced to take precipitate action for which the Centre would be responsible.

Source: paycommissionupdate.blogspot.in

The post Central Government Employees to march Parliament on 28th, demand scrapping of NPS, merger of DA appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

NFIR writes to Finance Minister to merge 50% of Dearness allowance with basic pay – 28.05.2014

admin — Fri, 30 May 2014 14:24:13 +0000

NFIR writes to Finance Minister to merge 50% of Dearness allowance with basic pay – 28.05.2014

On 28th May 2014, NFIR General Secretary writes to new Finance Minister Shri. Arun Jaitley to consider the huge anticipated demand of merging dearness allowance with basic pay for Central Government employees and Pensioners…

The letter is reproduced and given below for your ready reference…

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.1/5(A)/Pt.I

Dated: 28/05/2014

Sh. Arun Jaitley

Hon’ble Minister for Finance,

Government of India,

North Block

New Delhi

Dear Sir,

Sub: Merger of Dearness Allowance with Pay-reg.

While enclosing copy of Federation’s letter No. 1/5(A) dated 27/09/2013, NFIR desires to bring to your kind notice, the following facts for consideration.

2. In the Standing Committee meeting held under the chairmanship of the Secretary DoP&T, on 7th May 2014, the agenda item pertaining to merger of D.A. with pay was discussed by the JCM/Staff Side representatives. There has, however, been no positive response from the Official Side on the issue probably the VII CPC has started working on the terms of reference.

3. Now that the D.A. has become 100% of pay w.e.f. 01/01/2014 and another instalment of D.A. @ 6% of pay is likely to be granted by the Government w.e.f. 01/07/2014 as per the figures of Consumer Price Index, continuing D.A., without merger, is highly unjustified. In the past i.e. during the year 2004, the Government of India had merged 50% DA with pay for all purposes. Similar decision has, unfortunately, not been taken by the previous Government.

4. Seventh Central Pay Commission has already sent communications to JCM constituent organisations etc.. to submit Memorandums. At this juncture, it would be proper to convey to the Chairman, 7th CPC to consider the JCM (Staff Side) demand for merger of DA with pay with retrospective effect and send interim report to the Government for consideration.

NFIR, therefore, requests you to kindly consider our request and see that the Government makes reference to 7th CPC to consider DA merger with pay and to send its interim report to the Government for favourable consideration.

Thanking you.

Yours faithfully,

sd/-

(M.Raghavaiah)

General Secretary

Source: NFIR

The post NFIR writes to Finance Minister to merge 50% of Dearness allowance with basic pay – 28.05.2014 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

AIRF – Preliminary submission to the 7th Pay Commission

admin — Thu, 29 May 2014 10:55:44 +0000

AIRF – Preliminary submission to the 7th Pay Commission

Preliminary submission to the VII CPC

ALL INDIA RAILWAYMEN’S FEDERATION

(Estd, 1924)

4,State Entry Road,

New Delhi – 110055

INDIA

No.AIRF/405(VII CPC)

Dated: May 28, 2014

Justice Shri Ashok Kumar Mathur,

Chairman,

Seventh Central Pay Commission,

New Delhi

Dear Sir

Sub: Preliminary submission to the VII CPC

I, on behalf of 13 lakh Railwaymen, welcome you and the Members of the VII CPC, would like to submit the following as a preliminary step towards our approach and expectations from the VII CPC.

All India Railwaymen’s Federation(AIRF) was established in the year 1924, and the leadership of this federation was heralded by the eminent personalities like Shri V.V. Giri, who was one of the founder members of the AIRF and was the General Secretary of the AIRF for long 10 years from 1927-37. Lok Nayak Jayaprakash Narayan was the President of this federation from 1947-57. Last President of the AIRF was Shri Umraomal Purohit, from 1980 to till his death in February 2014. He was also Secretary, Staff Side, National Council(JCM) since 1977.

All India Railwaymen’s Federation(AIRF) participated in the Independent struggle. It also saved Railway Industry from economic depression of 1930 and faced other challenging tasks at different times.

Railwaymen are the second line of defence, and during 1962 Chinese aggression, 1965 Pakistan War and 1999 Kargil War etc., Railwaymen stood firm in the duty post and carried out army and the necessary equipments to war front.

During natural calamities, like floods, earthquake etc., the Railwaymen transport necessary helps to the victims, and in far-flung areas in the country for conducting smooth elections. The Railwaymen run thousands of Special Trains, and during the 16th Lok Sabha elections, Indian Railways run 5,000 Special Trains in addition to split coaches for ferrying security personnel and election materials.

The Railways is a common man’s transport, cheaper than other modes of transport as also eco-friendly. The Indian Railways is the symbol of national integrity.

EXTENSION AND IMPROVEMENT IN RAILWAY SERVICES

The Railways generate resources, internally also to a substantial quantity. The Railways is having 16 Railway Zones, 06 Production Units and Metro Rail, Kolkata(a new Railway Zone).

INDIAN RAILWAYS

Comparative Statement of improvement in productivity of the Railwaymen is as under:-

	2005-6	2012-13	Variation
Net Ton Kilometer (Million)	441762	641849	+ 45.29
Passenger Kilometer (Million)	615634	1098103	+ 78.37
Staff Strength (In Thousands)	1412.4	1287.3	(-) 8.86%

Traffic Unit for 1000 employees*, which is an indicator of improvement is as follows:-

2000-2001	2011-12
535	1408

*Traffic Unit represents Passenger Kilometer and NTKM

Indian Railways working is of belt system. It is not an individual’s performance, but collective efforts of all sections of the Railwaymen, which represents improvement in the performance.

SAFETY

Safety gets paramount importance in the working of the Indian Railways. Unfortunately, new trains are being

introduced as per the demands, but without increasing line capacity, rolling stock and manpower. Rather manpower is decreasing violating the provision of the Hours of Employment. A committee in respect of Working Hours etc. of the Railwaymen was appointed by the Ministry of Railways, which had submitted its report to the Railway Board in August 2013, but unfortunately, no decision has yet been taken on the report of the said committee despite repeated representations. National average for training is 2% of the total expenditure, but the Railways spent only 0.50%.

Railwaymen are the Industrial Workers and govern under the Industrial Disputes Act and Hours of Employment & Regulations, framed under the Railway Act and Factory Act.

There are more than 7,000 railway stations, of them over 6,000 are road side stations. Large-number of stations are in the forest and terrorist infested areas. Staff working at the roadside stations are bereft of housing, potable water, sanitation, medical aid, and children education is a far cry.

Railwaymen work round the clock, and they have to remain vigilant all the 24 hours in 365 days. A committee was appointed on the Safety of the Railways under the chairmanship of Dr. Anil Kakodkar. Para 2.3 of the said report is cited below:-

	Killed	Injured
Railwaymen	1,600	8,700
Passenger/Public	1,019	2,118
(Unmanned Level Crossing)	723	690

WAGES, DEARNESS ALLOWANCE AND OTHER ALLOWANCES

The wages of the Railwaymen are low in comparison to the workers of the PSUs. This has been constantly agitating the minds of the Railwaymen.

1st to 7th CPC appointed only after the series of agitations, submission of Charter of Demands or after the Strike Notice.

AIRF had to launch country-wide strike against anti-labour report of the 2nd CPC in the year 1960 and against the report of the 3rd CPC(20-day long 1974 strike).

LIVING WAGE was propagated by the 1st CPC as back as 1946-47. It has been embodied in the Article 43 of the Constitution of our country, wherein directive principles have been enshrined. Unfortunately, the same is yet to be achieved after 66 years of the Independence and 62 years of adoption of the Constitution.

The 4th CPC in para 7.32 of its report at page 85 had recommended periodical revision/review of wages through bilateral negotiations.

Railwaymen need separate consideration in respect of wages, allowance and other benefits. This matter was

agitated before the VI CPC also, and the VI CPC in para 7.36.100 of its report had observed as follows:-

“Various Railway Federations have demanded a special dispensation for Railway employees keeping in view the profitability of their organization. The demand is not without substance especially as employees have to be rewarded for efficient performance of the entire organization that has yielded continuous profits without resorting to any substantial increase in the passenger/freight fares in the recent years. A separate dispensation in terms of pay scales and allowances is not, however, possible, as long as the organization continues to be a Ministry in the Central Government because it will then need to be governed by the common pay scales and allowances for the entire Central Government. In such a scenario, the optimal solution would be corporatization of Indian Railways as a Public Sector Enterprise. This would allow the Railways flexibility in determining its own compensation package”.

The Staff Side, National Council(JCM) Standing Committee, had a discussion with the Government on Terms of Reference of the VII CPC on 24.10.2013 and requested to have another round of discussions in the matter, but unfortunately the government issued the said ToR unilaterally, which was protested by the Staff Side, NC/JCM. A meeting of the Standing Committee of NC/JCM was also held on 07.05.2014, wherein the issue of Interim Relief and merger of Dearness Allowance were again raised.

It may be mentioned here that, Interim Relief was recommended by the 3rd CPC, and the 4th CPC had recommended two Interim Relief. Before appointment of the V CPC, discussions were held on different dates in September 1993 with the Cabinet Secretary, when an Interim Relief of Rs.100 p.m. to Group `C’ and `D’ employees was sanctioned prior to appointment of V CPC and subsequently V CPC had recommended two Interim Relief. Interim Relief requires to bridge the gap of erosion in the real wage during interregnum period.

MERGER OF DEARNESS ALLOWANCE

25% Dearness Allowance was merged in the Pay after series of negotiation with the Cabinet Secretary in September 1993.

The V CPC in its report had also recommended merger of Dearness Allowance when it crosses 50%, and the same was done.

It is necessary to point out here that the inflation trend prevailing during 01.01.1996 to 31.12.2005 and from 01.01.2006 to 01.01.2004 inflation was 74%, whereas from 01.01.2006 to 01.01.2011, it was 51%, and further raised to 100% on 01.01.2014.

Yours faithfully,

sd/-

(Shiva Gopal Mishra)

General Secretary

Source : AIRF

The post AIRF – Preliminary submission to the 7th Pay Commission appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

7th CPC ToR, DA Merger and Stepping up…9 Points to be discussed in the Standing Committee of National Council(JCM) – AIRF

admin — Sun, 20 Apr 2014 19:29:45 +0000

7th CPC ToR, DA Merger and Stepping up…9 Points to be discussed in the Standing Committee of National Council(JCM) – AIRF

AIRF published the 09 Point Agenda for discussion in the Standing Committee of National Council(JCM) having burining issues of Centrail Government Staff of India on its official website today, the same is reproduced and given below for your information…

No.NC-JCM/2014/VII CPC

Dated: April 9, 2014

The Chairman,

Standing Committee

National Council(JCM),

South Block,

New Delhi

Dear Sir,

Sub: Agenda for discussion in the Standing Committee of National Council(JCM)

An agenda, comprising of 09 items, to be discussed in the Standing Committee of the National Council(JCM), is being enclosed herewith for necessary action.

Yours faithfully,

-sd-

(Shiva Gopal Mishra)

Secretary, Staff Side

National Council(JCM)

DA/As above

Copy to: All Constituent Organisations of the National Council(JCM) – for information.

TERMS OF REFERENCE FOR THE 7th CENTRAL PAY COMMISSION

The Government of India have finalized the Terms of Reference of the 7th CPC and circulated the same vide Ministry of Finance’s Resolution No1/1/2013-E.III (A) dated 28th February, 2014. It is a matter of concern that and disappointment that the Terms of Reference have been finalised unilaterally without having thorough discussion with the Staff Side and their views have also not been taken care of while doing so.

It may be recalled that a meeting was convened by the Secretary (Personnel) with the Staff Side members on 24th October, 2013 to discuss the possible Terms of Reference for the 7th CPC being appointed. In that meeting the Staff side had specifically requested that a copy of Terms of Reference for 7th CPC, as proposed by the Ministry of Finance may be circulated to all concerned and thereafter another meeting with Secretary, Department of Expenditure and Department of Personnel & Training be arranged with the Staff Side to discuss and finalise the same, which is clearly mentioned in para 11 of the Record Note of Discussion of that meeting. Subsequently, the Staff Side again requested for an urgent meeting with the Secretary(Expenditure) and Secretary DoPT for finalization of the Terms of Reference (ToR) for the Seventh Central Pay Commission vide its letter dated 23rd January, 2014. However, no such meeting was convened and Terms of Reference for the 7th CPC have been finalised by the Government on 28th February, 2014.

While going through the ToR, as finalized by the Government, it is observed that many of the suggestions of the Staff Side, in regard to date of effect of Pay Commission, Merger of D.A., Interim Relief, representation of labour representative in the Commission itself, parity issues in regard to pensioners, settlement of the pending Anomaly items etc., have not been duly considered, which is a matter of dissatisfaction.

The Staff Side, therefore, demands that the Government must discuss the Terms of Reference for the 7th CPC with them and make necessary amendments/revisions to the Terms of Reference.

1. Revision of Wage with effect from 01.01.2011

The present wage structure of the Central Government employees is in vogue on the basis of the recommendations of the 6th Central Pay Commission, which took effect from 01.01.2006 in the case of Pay, and in the case of Allowances from 01.09. 2008.

The wage revision of the Central Government employees is done every 10 years, which was recommended by the 5th CPC, however, in the case of Central PUSs, the wage revision normally takes place after every five years. In the past, wage revision has been linked to the extent of erosion of real wages. The degree of inflation in the economy determines the pace of erosion of the real value of wages. The retail prices of those commodities which are computed for determining the minimum wages have risen by about 160% from 01.01.2006 to 01.01. 2011, whereas the D.A. compensation, in the case of Central Government employees, on that date had been just 51%.

Since wage revision in all the Central Public Sector Undertakings takes places every five years through collective bargaining, revision of wages of the Central Government employees in 10 years gives rise to serious disparity in wages and allowances of the Central Government employees, vis-a-vis those in Public Sector Undertakings, which is a major cause of discontentment among them. The Staff Side, therefore, demands that the wage revision of the Central Government employees must also take place after every 5 years on the analogy of CPUSs and therefore, Government must specify the date of effect of the recommendations of the 7th CPC accordingly, i.e. to take effect from 01.01.2011 in place of 01.01.2016.

2. Merger of DA with Pay

The wage revision of the Central Government employees takes place only through setting up of Central Pay Commissions, which has many a times proved to be a time consuming process. The 6th CPC submitted its report in the time frame provided to it, i.e. 18 months. Since the earlier Commissions had covered many aspects of the principles of wage determination and the periodicity of such revision had come down, the exercise might not now require a longer period of time as was the case earlier, still the 7th CPC shall require a reasonable time frame to go into the matter judiciously because the implementation of the recommendations of the 6th CPC have given rise to large number of anomalies and cadre related grievances.

The methodology adopted for compensating the erosion in the real value of wages in the interregnum period had always been though the mechanism of merger of a portion of DA. The 5th CPC had 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 6th CPC the DA to the extent of 50% was merged with pay.

As on 1.1.2014, the Dearness compensation is 100%. The suggestion for merger of DA to partially compensate the erosion in the real wages was first mooted by the Gadgil Committee in the post 2nd Pay Commission period. The 3rd CPC had recommended such merger when the Cost of Living index crossed over 272 points i.e. 72 points over and above the base index adopted for the pay revision. In other words, the recommendation of the 3rd CPC was to merge the DA when it crossed 36%. The Government in the National Council JCM at the time of negotiation initially agreed to merge 60% DA and later the whole of the DA before the 4th CPC was set up. The 5th CPC merged 98% of DA with pay. It is, therefore, necessary that the Government takes steps to merge atleast 50% of DA with pay to compensate the erosion of the real value of wages immediately.

3. Appointment on compassionate grounds under the Central Government

Under the pretext of Hon’ble Supreme Court directives, the Central Government introduced a 5% ceiling on compassionate ground appointment. On account of this ceiling limit of 5%, a large number of cases of appointment on compassionate grounds of the dependents of the deceased Central Government employees have been pending in different departments, with the result that, the bereaved families of the late employees are constraints to face undue hardship due to loss of bread winner. Some of such candidates, belonging to Department of Posts, approached the Hon’ble Court of Law and obtained favourable orders, however, these directives have not been acted upon. The Government has chosen to dillydally by filing SLP in the Supreme Court.

It may be recalled that, the Central Administrative Tribunals were established with the intention of expeditious settlement of disputes on service matters. Even recently the Prime Minister’s office ordered that it would not be open for various Ministries to appeal against the orders of the Tribunal as a matter of course and efforts must be to explore the ways of acceptances of the judgements of the Tribunal. In the light of these directives, the SLP ought to have been withdrawn.

It is pertinent to further mention here that, the standing Committee on Department of Personnel in one of their reports has termed the scheme of compassionate ground appointments as a sacred assurance to a fresh entrant that if he dies in harness, his family shall not be left in lurch. Such an assurance is being breached by the provisions of limiting such appointments to 5% of vacancies.

The Staff Side is, therefore, of the firm view that this condition of 5% ceiling must be done away with to provide relief to the bereaved families of the deceased Central Government employees.

4. Regularisation of Casual/Contingent/Daily Rate workers

Due to ban on creation of posts and recruitment of personnel that continued for a very long period and the consequent strain on the existing workers, many departmental heads had to recruit personnel on daily rated basis or as casual workers. Thus, almost 25% of the present workforce in the Governmental organisations are casual workers deployed to do permanent and perennial nature of jobs, contrary to the prohibition of such unfair labour practices by the law of the land. In the fifties and sixties, even the casual workers who had been employed to do casual and non perennial jobs used to get priority for regular employment as and when vacancies for such permanent recruitment arise. It is, however, a matter of concern that thousands of persons are now recruited as casual workers and kept as such for years together and are paid pittance of a salary with no benefits, like Provident Fund, Dearness Allowance, other Compensatory Allowances etc. In order to ensure that they do not get the benefit of regularisation, these workers are technically discharged for a few days to be employed afresh again. The modus operandi differs from one department to another. While in some organisations, they are recruited through Employment Exchanges, in others, the functions are contracted out. Not only the quality of work suffers, but it is also an inhuman exploitation of the workers given the serious situation of unemployment that exists in the country. While the permanent solution is to sanction the necessary posts and resort to regular recruitment, the Government should evolve a scheme by which these casual/contingent/daily rated workers are made regular workers with all the concomitant benefits available for regular Government employees. Pending finalisation of such a scheme for regularisation, the non regular employees recruited for meeting the exigencies of work must be paid pro-rata salary on par with similarly placed regular employees on the principle of equal pay for equal work.

5. Downsizing, Outsourcing, Contractorisation etc.

To overcome the difficulties emanated from the total ban on recruitment and creation of posts and more specifically impacted by the 2001 executive fiat of the Government of India in the matter, many departments had to resort to outsourcing of its functions. Some were virtually closed down and a few others were privatised or contractorised. The large scale outsourcing and contractorisation of functions had a telling effect on the efficacy of the Government departments. The delivery system was adversely affected and the public at large suffered due to the inordinate delay it caused in getting the requisite service. The financial outlay for outsourcing of functions of each department increased enormously over the years, as a consequence of which, the quality of work suffered. In order to ensure that the people do get a better and efficient service from the Government departments and to raise the image of the Government employees in the eyes of the common people, it is necessary that the present scheme of outsourcing and contractorisation of essential functions of the Government must be abandoned. The practice of outsourcing and contractorisation is nothing but a cruel exploitation of the alarming situation of unemployment. The system of outsourcing of the functions seeks to informalise the workforce. The contract/casual workers get not even one third of the salary of the regular work force. They have no social security benefits like pension, provident fund gratuity etc. The Central Government employees fought against the temporary service rules which was in vogue in sixties and ensured that the recruitment to Government service is permanent and the civil servants are not allowed to be fired at the whim and fancy of their bosses. The outsourcing and contractorisation has paved way for large scale entry of casual workers and has resulted in the reversal of what all achieved in this direction through struggles in the past two decades.

The prevalent system of outsourcing and contractorisation, therefore, needs to be abandoned and all the regular and perennial nature works should be entrusted on regular Government employees only.

6. Revising Overtime Allowance(OTA) and Night Duty Allowance Rates

It may be seen that the Overtime Allowance is seldom paid to the Government employees. It is only in case of emergency and in the contingency in which the work cannot be postponed, like that happens in the Railways in smooth running of trains round the clock, in the RMS Division of Postal Department, in the Atomic Energy Commission offices or when the Parliament is in session in other administrative offices, employees are asked to do work beyond the stipulated working hours. The Night Duty Allowance is, however, paid to Government employees who have to work in night shifts with certain stipulated conditions. The 4th CPC recommended that since there had been considerable misuse of the provisions relating to grant of OTA, the Government should find alternative methods to compensate the employees who are asked to work on over time and pending such a scheme being evolved recommended not to revise the rates. However, the Government did not bring in any new scheme but issued the directive that the OTA and Night duty allowance will be paid to the employees who are called upon to do overtime or night duty on the basis of the 4th CPC pay structure. This directive is still in vogue.

Owing to certain disagreements with the Government on these issues, this matter was referred to Board of Arbitration under the JCM Scheme, whereupon the Board of Arbitration, having found unreasonable position taken by the Government, gave out the award in favour of the staff and directed the Government to revise the order whereby the allowance will be linked to the actual pay of the Government employees. The Government did not accept this award and decided to approach the Parliament for rejection of the same. The matter has not yet been placed in the form of a resolution in the Parliament. Despite the fact that the employees had been abiding by the directive of their superiors to be on overtime/night duty, and despite having won the case before the Board of Arbitration they continue to be compensated on the basis of the Notional pay as in 1986. There cannot be a much bigger injustice meted out to the employees. The Government must accept the award of the Board and issue instructions linking the Allowance to the actual pay of the employee.

7. Stepping up of pay of seniors who are drawing less pay than the juniors consequent on fixation of pay due to implementation of 6th CPC recommendations between Direct Recruits and Promotees

Consequent upon implementation of the recommendations of the VI 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 different department in their Departmental Anomalies Committees for redressal thereof. While clarifications regarding stepping up of pay of senior who are drawing less pay than the juniors between Direct Recruitees and Promotees, i.e. the seniors and juniors placed in a pay scale, having some Direct Recruitment Quota, have already been issued, whereby seniors’ pay has been stepped up and equated to the juniors. However, in grades where there is no element of Direct Recruitment available, this provision has not been made till date, with the result that, the seniors are still drawing lesser pay than their juniors after fixation of their pay in new pay scales w.e.f. 01.01.2006, which, being a serious anomaly, is resulting in discontentment prevailing among the seniors.

The main incongruity in this case is basically due to the fact that it is for the first time that the 6th CPC has recommended specific entry level pay for Direct Recruits (DRs). This has resulted in employees who were appointed in service prior to the DRs and got promoted earlier are getting 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.

The Staff Side, therefore, is of the firm view that orders need to 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 anomalous situation.

8. Stepping up of pay of senior employees at par with their juniors consequent upon implementation of MACPS

The Modified Assured Progression Scheme(MACPS) came into effect on 01.09.2008, and prior to this, Assured Career Progression(ACP) was in vogue. There are number of cases where the seniors who were promoted before implementation of the MACPS and the juniors who could not get normal promotion due to non-availability of vacancy or otherwise, and were extended the benefit of financial upgradation under MACPS on fulfillment of conditions laid down therein, the seniors are drawing lesser pay than their juniors under this scheme.

The MACP Scheme does not stipulate the provision of stepping up of pay of the seniors at par with their juniors, in case the seniors getting lesser pay than their juniors, which is absolutely unjustified and discriminative.

The Staff Side has repeatedly raised this issue in the MACPS’s Anomaly Committee as well, however, this discrepancy has not been done away with till date, with the result that, the seniors are still drawing lesser pay than their juniors, having been extended the benefit of financial upgradation under MACPS and this is causing deep sense of frustration prevailing among the seniors.

Staff Side, therefore, is of the firm opinion that the above-mentioned discrepancy needs to be addressed at the earliest to provide relief to the seniors.

9. Granting of Additional Pay to Loco & Traffic Running Staff

On the basis of recommendations of the 6th CPC, Additional Pay of Rs.1000 p.m. with appropriate Dearness Allowance has been granted in favour of Loco Pilot(Mail/Express)/Sr. Motorman(PB-II, GP Rs.4200)/(Rs.6000-9800)(5th CPC). Similarly, Rs.500 has been granted to Loco Pilot(Passenger II/ Motorman)(PB-II, GP Rs.4200)/(Rs.5500-9000)(5th CPC) and Guard(Mail/Exp.)(PB-II, GP Rs.4200) (Rs.5500-9000)(5th CPC). But the same Additional Pay has not been granted to rest of the Loco & Traffic Running Staff, causing great injustice to these set of Loco & Traffic Running Staff.

It would be quite appropriate that the Additional Pay should be granted in favour of all other categories of Loco & Traffic Running Staff.

Source: AIRF

[http://www.airfindia.com]

The post 7th CPC ToR, DA Merger and Stepping up…9 Points to be discussed in the Standing Committee of National Council(JCM) – AIRF appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Whether Cabinet Approved Merger of DA with Basic Pay today(28.2.2014)..?

admin — Sat, 01 Mar 2014 09:08:28 +0000

Whether Cabinet Approved Merger of DA with Basic Pay on (28.2.2014)..?

One of the leading news media ‘IBN Live‘ reported that “the Union Cabinet approved a hike in dearness allowance (DA) to 100 per cent from existing 90 per cent benefiting 50 lakh Central government employees and 30 lakh pensioners. The DA hike though, will not be merged with the basic pay“.“.

On the other side, one of the popular media news agency, ‘Business standard‘ said that 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 on 01-03-2014 to take call on these ordinances“.

Which is correct…?

Source: www.centralgovernmentemployeesnews.in
[http://centralgovernmentemployeesnews.in/2014/02/whether-cabinet-approved-merger-of-da-with-basic-pay-today/]

The post Whether Cabinet Approved Merger of DA with Basic Pay today(28.2.2014)..? appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.