Wednesday, January 15, 2014

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 declared 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.

Source: gservants.com
[http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/]

25 comments:

Merger of 50% DA with BP at this moment would further support inflation. it is suggested to have the merger once inflation recedes to at least 6%.

This comment has been removed by the author.

Contention of 25% hike in allowances in lieu of the merger of DA is like taking away a Dairy Milk chocolate and handing over a small sugar candy..... Making fool..... Let us not be fooled....... I personally am losing around Rs.6000 per month now

it must bee needed, other wise employees are no more patience to work with this low salaries,govt may recognise our problem and hope solve the problem as early as possible.

Taking into considerations, yes it should be increased the DA with the vast increase in the rate of market. And why the Indian Government is shy to declare and make DA well in time.

the merger of 50% da into basic pay will benefited for working and retired central government employes ,but increase in 25% allowances are benefited for only working class ,

It is beneficiary for the Pensioners also & expected the deadline is 2016 and expected the declare of the pay revision is on 2017-18 on tat instance the DA is about to be 172% and hence on that time arrear should be huge

It is mandatory to merger of 50% DA with Basic pay instead of hiking 25% allowances, so as to all Govt employees get a bit of relax.

The merger of 50% DA with basic pay will give somewhat consolation to pensioners as their major portion of pension are spent in Medical expenses and transport and it has become very difficult to survive with the meager pension.

Because of the forthcoming parliament elections the central Govt must think for their vote bank. After announcment of AIPIN the index level for the month of December 2013 it has reached to 100.09. So there is no doubt the DA will be 100% from 01.01.2014. For their own benefit the Govt have to consider the merger of 50% DA with the basic salary to give some relief to the employees and pensioners. Though many of the fedrations will be pressing central Govt for 100% merger but 50% merger will also be acceptable.

First deliver services to the public. Be happy what you get. Retirement age should be lowered to 40 years so that the vast majority of unemployed youth get employed and retire at 40 so on and so forth.I was a former Central Government employee.

Rely sir I don't think u wrkd as govt employer if u wrk then u nver say that retirement reduced to 40.........

Allowances will have no impact on merging DA with basic Pay???Can somebody cleary explain what does this exactly mean???

I think government isn't serious in merger of DA with Basic pay. This decision will be left to next government which may be formed after the parliamentary election.

For Pensioners, 100 % merger of DR will have no immediate effect.But if 50% is merged the remaining DR will get an additional 25% increase.For Serving employees, 100% merger means double the HRA and no DA factor on Transport Allowance unless the Grade pay is not doubled.

DA/DR is when announced by the Central Cabinet will be 100%
effective from 01-01-2014. As all are aware, the DA/DR increase
is both on basic and grade pay.
5th CPC had recommended merger of D.A./DR with basic pay /
pension when it breaches the 50%. Now that DA/DR is 100%
(50%x2 times) from 01-01-2014, the entire 100% DA/DR need
to be merged with basic pay and grade pay /pension to arrive at
revised basic pay/pension.
The serving employees will get increased HRA etc.which are
pegged as percentage to basic pay from 01-01-2014. DA/DR
having been merged with basic pay/pension,the serving employees
and pensioners would get Zero % DA/DR for next six months from
January to June 2014. Any percentage of DA/DR hike based on CPI
as from July 2014 will be on the revised basic pay /pension.
A good relief to neutralize the inflation.
R.G.Nakhate

how will it be calculated for pensioners. my basic pension is 11625. will be benefited? how much pl let me know. goswami

AB KUCHCH NAHI HOGA SHAANT HO JAO KENDRIYA KARMCHARIYO. JO MIL RAHA HAI OOSI ME PRASANNCHIT RAHO

As the model code of conduct is likely to enforce shortly, there is need to take some very vital issues of Central Government employees and pensioners very seriously like merger of 50% DA from 1.1.11, 100% from 1.1.2014, grant of HRA to pensioners according to the status of city like regular employees of Central Government.

any update of DA merging

IF YOU ARE IN NEED OF BENIFIT YOU SHOULD BE HONEST WITH YOUR SELF AND WORK WITH HONESTY AND NOT PARTICIPATE IN GOSSIP AND CORRUPTION AND BE HONEST WITH YOURSELF ALL GOVERMENT EMPLOIES

all bakwaas now! This govt is a total failure!!

What is the use of saying what is expected when the Govt is not going to give any thing to its employees or pensioners. This is trash,put it in trash can.

Arrange for last rites for Govt, Man Mohan Singh and all others. We want YOUNG blood. None above 55 years. so that they retire at 60,and no more above 60 in Govt. We want a Govt of the people, by the people and for the people that take careof the people of the nation. We want no foreigners or mix.
Multi-contry-origins. We Indians have Indian leaders. We will elect them by the power of our vote. We will place our demands and they will approve and sanction them. We do veto the mix. And, boycott In-Italias and Pak-Indians Congress.

LEAVE THE TRASH INTO TRASH CANS,DO NOT WASTE TIME OF PUBLIC READERS. WE HAVE NO TIME TO WASTE. HE GOVT IS DEAD, NOTHING IS EXPECTED FROM THEM.

i think retirement age should be lowered to 58 years as happens in defense services. thereby efficiency in govt dept will increase, benefiting all. who wants a old man with no aspirations pushing file on desk. it will open up new pastures for younger genration. i retired as asst director from incom tax.

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