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

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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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Comments

  1. Merging of 50% DA as recommended by CPCs in the past was accepted. Once the recommendation is accepted by the Govt sanction for implimentation is necessary and it should be automatically be accorded by the Govt. Merging of 50% DA was due on 1-1-2011 and the Govt has not accorded sanction till date. And,now inclusion of the HOT POINT in ToR of VII CPC makes no sense. IT IS THE DELAYING TACTICS OF THE GOVT. Federations, Unions, Associations, Confederations, all Organisations, allemployees and pensioners have been fooled by the Govt. Now all wait for the VII CPC to assemble, study, and draft their recommendations and then submit and then the
    cabinet may consider,and then they may accept and sanction. All these takes considerably long time. Now wait.

    Raising of DA to 100% was due on 01-01-2014. The Govt had scheduled sanction of DA twice a year during May and Sep each year and hushed all employees and pensioners.
    Now wait, wait,wait. Why not Govt sanction DA immediately when the price index is risen up. Why not four times a year instead of two? Why merging of 50% is delayed though the second merging became due (at100%)? We should not be so cooled and fooled to stay frozen . with the tactics of the Govt. The Govt have over smarted the trusted people. We cannot wait any more. Sanction of DA rising to 100% and full merging (100% merging) is the RED HOT demand. And we need it soon.

    GIVE OR GO. SANCTION OR LEAVE. SET DECISION WHERE TO VOTE. VOTE IS OUR POWER. VOTE WILL CHANGE GOVT.

  2. When the notification for general election is likely to be announced? Whether anything will happens before that? When APP shown their strength in Delhi, where more and more central govt employees and their families are living happily, turned against the UPA, the same govt too thinking of teaching a lesson? That is the reason. Do good thing. During the emergency period of Late Indira Gandhi ji, the prices of commodities hotel charges, not to say every where, every thing was coming down. Services in the govt offices where good. NOW not to say anything.