Wednesday, April 24, 2013

No need to pay Arrears on DA and 7th CPC - Early Decision

No need to pay Arrears on DA and 7th CPC - Early Decision
Decision in the right time –will avoid more funds to allocate as arrears!
At last, the most eagerly awaited announcement of additional dearness allowance has been declared by the cabinet, due from January 2013 to Central Government employees and Pensioners.

In general the announcement of dearness allowance has been made in the month of March every year. But this year this has been declared in the month of April. Though it was announced after some delay, there is no any loss, as the dearness allowance hike has to be paid with effect from 01-01-2013.

Before this announcement, there was a rumour that 50% dearness allowance will be merged with basic pay or otherwise dearness allowance will not be hiked, but the cabinet committee decision cleared these doubts.

Employees and Pensioners will get one more month arrears from January to April. Government has to allocate more funds as arrear due to delay.

If the decisions concluded in the right time, there will be no chance to allocate more fund for the payment of arrears and also prevent practical problems to accounting staff.

Even the National anomaly committee, after six years it was formed, has not solved all the problems raised due to the implementation of 6th CPC.

After the implementation of 6th CPC in 2008 with effect from 01.01.2006 , arrears had to be paid to Central Government servants. To avoid the additional financial burden, the Central Government decided to pay the arrears’ in two installments in 2008 and 2009. For this, government had to allocate more fund from budget. It can be avoided by early constitution of 7th pay commission.

So, to find the solution to all including disbursing authorities, setting up of 7th Central Pay Commission at early stage to implement in the right time, the same is demanding by the central trade unions and associations.

Every decision in the right time –will avoid more funds to allocate as arrears!


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