DA to CPSE Employees from Jan 15 – 262% to 273% for without 50% DA Merger – 212% to 223% with 50% DA Merger

Payment of DA to the CDA pattern employees of CPSEs governed by HPPC recommendations.

“In case of CPSEs who have not allowed the benefit of merger of 50% of DA with basic pay, the DA may be enhanced from existing rate of 262% to 273% and In case of not allowed the benefit of merger of 50% of DA with basic pay, the DA may be enhanced from existing rate of 212% to 223%.”

G.I., Dept. of Public Enterprises, O.M. No.2(42)/97-DPE (WC)-GL-VIII/15, dated 29.5.2015

Subject: – Payment of DA to the CDA pattern employees of CPSEs governed by HPPC recommendations.

The undersigned is directed to refer to Para No. 2 and Annexure-III to this Department’s OM. dated 24.10.1997 wherein the rates of DA payable to the employees of CPSEs following CDA pattern pay scales, which are governed by HPPC recommendations had been indicated.

2. In continuation of this Department’s OM of even number dated 9.10.2014, the rates of Dearness Allowance w.e.f. 01.01.2015 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 262% to 273%.

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 212% to 223%.

3. 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.

4. 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 action at their end.

Authority : dpe.nic.in

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Central Goverment plans to merge DA with basic pay

 Central Goverment plans to merge DA with basic pay

Ahead of the Lok Sabha Elections 2014, the UPA government at the centre is planning to woo its central government employees and pensioners by merging DA with the basic pay.

According to the sources, the Union Cabinet may accept the proposal of merger of DA with basic salary as part of the terms of reference of the 7th pay commission. 

If accepted, the move will benefit around 50 lakh central government employees and 30 lakh pensioners in the country.

It is along pending demand of Central government employees unions that besides raising the DA 100 percent it should be merged with the basic pay. As per the rule, DA is merged with basic pay when it crosses the 50% mark. 

It will result in 30-35 per cent hike in salary if 50 percent DA is merged with the basic pay.

Earlier, the central government had constituted the 7th pay commission before the Model Code of Conduct comes into the force in view of Lok Sabha Elections 2014, scheduled to be held in April-May.

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Merger of 50 percent DA may soon be considered by Central Government –Sources

Merger of 50 percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.
sources : gservants.com

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Retirement Age 62, Merger of DA, Scrapping of NPS, inclusion of federation leaders in 7th CPC etc. – Memorandum submitted to PM

Retirement Age 62, Merger of DA, Scrapping of NPS, inclusion of federation leaders in 7th CPC etc. – Memorandum submitted to PM

A confederation of recognised federations has submitted a memorandum to Prime Minister Manmohan Singh putting forth demands like extention of the age of superannuation of Central Government employees to 62 years.

Other demands of the federations include scrapping of the new pension scheme, inclusion of departmental nominees and federation leaders in the Seventh Pay Commission, merger of 50 per cent of DA with basic pay, etc.

Source : www.newindianexpress.com

[http://www.newindianexpress.com/cities/kochi/Memorandum-Submitted/2014/01/06/article1985108.ece]

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Central Government Employees ask Centre to Consider Merger of 50 percent DA

Central Government Employees ask Centre to Consider Merger of 50 percent DA

Government employees have asked the Centre to consider merging dearness allowance with their pay, arguing that the Sixth Pay Commission — quite like the Centre — could not have anticipated the high inflation that has eroded real wages over the last decade.

Since 2006 – when the recommendations of the last pay commission came into force – the dearness allowance has increased to 90%, a reflection of the high inflation environment that employees have to cope up with.

The demand was made at a preliminary meeting held between the department of personnel and the employee representatives to discuss the proposed Seventh Pay Commission announced by Prime Minister Manmohan Singh in September.

Congress media department chief Ajay Maken had asked the Prime Minister to announce the next pay commission in March this year. Writing in his capacity as a cabinet minister, Maken had also argued for a liberal increase in the salaries of government officials to attract and retain talent.

Representatives of government employees weren’t as optimistic.

Umraomal Purohit, secretary, staff side, however, did stress on the merger of dearness allowance (DA) with the basic pay. Purohit said that the sixth pay commission did not recommend merger as they could not have anticipated a high rate of inflation which resulted in employees being granted a 90% rate of DA.

Purohit and other representatives also emphasised that a system should be put in place to ensure that anomalies created due to recommendations of pay commissions should be resolved within a year of the implementation of the report.

Government sources said the pay commission could be notified over the next two months or so, well before the model code of conduct for the general elections kicks in. Also, the Centre is expected to give the panel enough time to prepare its report in the hope that the government would be a lot more comfortable vis-a-vis the fiscal deficit by the time the panel submits its report

 source : Hindustan Times

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