Tuesday, February 25, 2014

Dearness allowance likley to be hiked by 10% on Friday in Cabinet Meeting

Dearness allowance likley to be hiked by 10% on Friday: Zee News

New Delhi: The Union Cabinet is likely to approve hiking dearness allowance to 100 percent from existing 90 percent benefiting 50 lakh employees and 30 lakh pensioners in it meeting scheduled on Friday.

"The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100 percent this Friday as per agenda listed for the meeting," a source said.

This increase in the dearness allowance by the UPA-2 government comes ahead of the imposition of the model code of conduct by the Election Commission.

The model code of conduct is likely to come into force with the announcement of the schedule for the forthcoming general elections in a week or so.

Also it would be the second double digit DA hike in a row. The government had announced a hike of 10 percent to 90 percent in September last year, effective from July 1, 2013.

The hike in DA would be effective from the January 1 this year.

As per practice, the government uses Consumer Price Index- Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 percent. The revised retail inflation data for January would be released on February 28.

An official said that the preliminary assessment suggests that DA hike will not be less than 10 percent and would be effective from January 1 this year.

Source: http://zeenews.india.com
[http://zeenews.india.com/business/news/economy/dearness-allowance-likley-to-be-hiked-by-10-on-friday_95123.html]

Estimation of Basic Pay and DA after 50% DA Merger

Estimation of Basic Pay and DA after 50% DA Merger


What will be the difference in Basic Pay and DA after 50% DA Merger ?

An Estimation in respect of entry level pay in pay band applicable to Four Grade Pay which will fall in to each of four 6CPC revised Pay Scales PB-1, PB-2, PB-3, and PB-4

While all Central Government Employees across India are eagerly awaiting 50% DA Merger with Pay, we have attempted to estimate the difference in basic pay and DA after 50% DA Merger for entry level pay in pay band applicable to Four Cadres with Grade Pay Rs.2400, Rs. 4200, Rs.5400 and Rs. 8700/-

Basis for Estimating difference in Basic Pay and DA after 50% DA Merger

In 2004, when 50% DA Merger was made before implementation of 6th Pay Commission Report, applicable DA prior to DA merger was 61%. Then a new pay called Dearness Pay was created by taking 50% of basic pay and new DA @ 11% was calculated on basic pay and dearness pay as detailed below
Basic Pay (Rs)DPTotal BPDA @ 11%
6500325097501073
Calculation of Difference in Basic Pay and DA for proposed 50% DA Merger

Note: 1. This is only an estimation. Order for DA merger is yet to be issued by Government. Applicability and actual benefit will be known only after issue of formal orders for 50% DA merger.

2. We have taken in to account only the pay in pay band and grade pay for additional benefit out of DA merger. The impact of DA merger can also be calculated in respect of HRA and TA.

3. As DA eligibility as on 01.01.2014 is 100%, we have estimated the DA after 50% DA merger as on 01.01.2014 as 50%. The actual DA granted by Government from 01.01.2014 will be known only after issue of DA orders with effect from 01.01.2014.

4. We have estimated difference in Basic Pay and DA in respect of entry level pay in pay band applicable to Four Grade Pays Viz., Rs.2400, Rs.4200, Rs. 5400 and Rs. 8700, which will fall in to 6CPC revised Pay Scales PB-1, PB-2, PB-3, and PB-4 respectively. Similarly, in respect of other grade pay in 6CPC revised pay scales also difference in Basic Pay and DA on account of 50% DA merger can be calculated

6CPC Pay Scale PB-1 Rs.5200-20200

Pay in Pay Band – Rs. 7440

Grade Pay -Rs. 2400

Total Basic Pay – Rs. 9840
DA 100 %Total BP + DA before Merger (Rs)
984019680
Total Pay After 50% DA Merger
Pay in Pay Band – Rs. 7440
Grade Pay – Rs. 2400
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 4920
Total Basic Pay – Rs. 14760
DA 50%Total BP + DA after Merger (Rs)
738022140

Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 2460/-

6CPC Pay Scale PB-2 Rs. 9300-34800

Pay in Pay Band – Rs. 9300/-
Grade Pay – 4200/-
Total Basic Pay – Rs. 13500/-
DA 100 %Total BP + DA before Merger (Rs)
1350027000
Total Pay After 50% DA Merger
Pay in Pay Band – Rs. 9300/-
Grade Pay – Rs. 4200/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 6750/-
Total Basic Pay – Rs. 20250/-
DA 50%Total BP + DA after Merger (Rs)
1012530375
Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 3375/-

6CPC Pay Scale PB-3 Rs. 15600-39100

Pay in Pay Band – Rs. 15600/-
Grade Pay 5400
Total Basic Pay – Rs. 21000/-
DA 100 %Total BP + DA before Merger (Rs)
2100042000
Total Pay After 50% DA Merger
Pay in Pay Band – Rs. 15,600/-
Grade Pay – Rs. 5400/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 10,500/-
Total Basic Pay – Rs. 31500
DA 50%Total BP + DA after Merger (Rs)
1575047250
Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 5250/-

6CPC Pay Scale PB-4 Rs. 37400-67000

Pay in Pay Band – Rs. 37,400/-
Grade Pay Rs. 8700/-
Total Basic Pay – Rs. 46,100/-
DA 100 %Total BP + DA before Merger (Rs)
4610092200
Total Pay After 50% DA Merger
Pay in Pay Band – Rs. 37400/-
Grade Pay – Rs. 8700/-
Dearness Pay (50% of pay in pay band and Grade Pay) – Rs. 23,050/-
Total Basic Pay – Rs. 69,150/-
DA 50%Total BP + DA after Merger (Rs)
345751,03,725
Additional Basic Pay and DA on account of DA Merger as on 01.01.2014 – Rs. 11,525/-

Source: Gconnect.in
[http://www.gconnect.in/orders-in-brief/pay-allowances/pay/basic-pay-da-50-da-merger-estimation.html]

50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..!

50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..!

 This week may bring cheer to central employees and pensioners

Central Government employees and pensioners will find reasons to celebrate this week. The union cabinet is likely to clear some long awaited demands for it’s staff in the next meeting later this week The F.M., currently on foreign tour, likely to return India on 26th February and after which cabinet meeting is likely to take place.

According to information available with us, merger of 50% D.A., an additional hike of 10% D.A. from 01.01.2014, granting of Interim Relief and enhancing retirement age to 62 years are under the consideration of Govt. and some of these are to be approved in the next cabinet meeting.


As the notification of loksabha poll may be issued in the first week of March, this would be the last cabinet meeting before the code of conduct comes into force.

So the central employees and pensioners may definitely hope for some bonanza to be announced this week.

Source: www.paycommissionupdate.blogspot.in
[http://paycommissionupdate.blogspot.in/2014/02/this-week-may-bring-cheer-to-central.html]

CONFEDERATION OF CG EMPLOYEES CONDUCTED MASS DHARNA AT JANTAR MANTAR, NEW DELHI ON 24.2.2014

CONFEDERATION OF CG EMPLOYEES CONDUCTED MASS DHARNA AT JANTAR MANTAR, NEW DELHI ON 24.2.2014

CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES & WORKERS
CENTRAL HEADQUAERTERS
DHARNA AT JANTAR MANTAR NEW DELHI
ON 24.02.2014 GRAND SUCCESS
POLICE REFUSE PERMISSION TO CONDUCT DHARNA ON THE SECOND DAY.
As per the decision of the National Secretariat of the Confederation of Central Government Employees & Workers a mass dharna was conducted at Jantar Mantar (Parliament Street) New Delhi, to protest against the negative attitude of the UPA Govt. and Finance Minister Shri P. Chidambaram towards the 15 point charter of demands of the Central Government Employees, including DA merger, Interim Relief, inclusion of GDS under 7th CPC, Date of effect 01.01.2014 etc. Even in the Budget (Vote on account) presented by the Finance Minister in Parliament there is no mention about any of the Central Govt. Employees demands.
 Even though the dharna was scheduled for two days; it was concluded in the first day evening itself, as the Delhi Police denied permission for the Second day.(See Police Order below)Com. KKN Kutty, National President of the Confederation inaugurated the dharna. He declared that Confederation has decided to go fo an indefinite strike, immediately after election, if the Govt. is not ready to concede our demands. He congratulated all the Central Govt. Employees who made the Feb 12th & 13th two days strike a thundering success. National Convention of  the Confederation scheduled to be held at Nagpur on 4th April 2014, will decide the future course of action and also strike programme.

Com. S.K. Vyas, Advisor, Confederation, Com. M S Raja , Working Chairman, Com. Narasimhan, Vice President,Com. M. Krishnan. Secretary General,Com. Giri Raj Singh, Vice President, Com. Vrigu Bhattacharjee, Financial Secretary and General Secretary C-O-C Delhi, Com. R N Parashar, Asstt. Secretary, Com. R. Seethalaxmi G/S P-IV, Com. P. Suresh G/S R-IV, Com. A.K. Kanojia (ITEF), Coms. Harender Singh, Tirath Prakash (R-IV),  K.P. Singh (R-III),  Ami Chand , Rajesh Kumar Gautam (R-III), Balwinder Singh (P-III),  N. Subramaian (P-III),Com. K. Ragavendran, Ex, S.G., NFPE, Com. K.V. Sridharan, Ex. GS-P-3 , Com. D.K. Rahate, Ex. President, NFPE ,Com. Gita Bhattacharjee (Convernor , Women Sub Committee) and so many other Comrades from C-O-C Delhi  participated in the day long dharna.

50% DA MERGER - Impact of Merger of 50% Dearness Allowance with Basic Pay

50% DA MERGER - Impact of Merger of 50% Dearness Allowance with Basic Pay

Any possible to convert 50% of dearness allowance to dearness pay..!

Everyone's pointing fingers at "Parliament Election"...!

50% DA MERGER
50% of dearness allowance had been merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004. This was followed the recommendation of 5th Central Pay Commission and the Union Government had decided to merge 50% of dearness allowance with baisc pay and issued orders on 1.3.2004.  (61% - 50% = 11%) 50% of dearness allowance merged with basic pay and remaining 11% had been issued as normal dearness allowance with effect from 1.1.2004.
Example : An employee's Basic Pay had revised as under on 1.1.2004 after 50 % DA merged with basic pay...

Basic PayDearness allowance 61%TotalBasic PayDearness PayRemaining percentage of Dearness allowance 11%TotalDifference

4000

2440

6440

4000

2000

660

6660

220


[And the next instalment of additional dearness allowance from 1.7.2004 declared as 3%, then the total dearness allowance went up to 14%. When implementation of 6th CPC, the above employee's basic pay was 4200 as on 1.1.2006, it just multiply with 1.86 and add with corresponding grade pay.]

Everybody thinking as more benefit on 50% of DA merge with basic pay...not like that..!

It is essential to CG Employees, of course for others, getting from some other way in hike in regular income...

For Example, an employee's basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the calculation is clearly shows the difference only 50 rupees per month...

Basic PayDearness allowance 51%TotalBasic PayDearness PayRemaining percentage of DA 1%TotalDifference

10,000

5100

15100

10000

5000

150

15150

50


"Note that the 50% of Dearness allowance will not merged with basic pay, instead of the amount showing only as 'Dearness Pay'. This amount will pay upto only the date of implementation of 7th pay commission. 

This is only as a advance hike for all employees before the implementation of 7th CPC. 

When fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the revised pay rules, the amount of ‘basic pay’ will be taken without dearness pay. 

For example, approximately basic pay of the above employee will be 12,250 as on 1.1.2016 . This amount only will be taken as Basic Pay for the calculation of pay fixation against the amount of 18,375. 

The enhanced amount will be given for us as Interim Relief for the period between announcement and implementation...It is not at all merged with ‘Basic Pay’..!
We can hear, what about hike in HRA and other entitlements...

The rate of HRA is provided according to the cities, like 10, 20 and 30%. Don't think all Central Govt Employees are getting 30%. And one more important points is the percentage hike in HRA will not applicable to those who are living in Government Quarters. In major metropolitan cities, thousands of employees are residing with Government Accommodation. They will pay more as HRA to Government and they don’t bother about increasing in HRA. 
Transport Allowance is providing according to their GP and classified cites, the amount is vary from 400 to 3200 plus DA thereon. The TA amount may decrease when 50% of DA merged with basic pay. 
So, ultimately hike in Basic pay only the factor is more beneficial in DA Merger.

But in 6th CPC there was no recommendation to convert dearness allowance as dearness pay each time the CPI increase by 50% over the base index recommended in pay commission report. 
All Central Government employees federations are showing maximum effort to achieve the demand of "Merger of 50% Dearness Allowance with Basic Pay" at this time. 
 Federations sources said, there will be chance to announce before March...!

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/50-da-merger/]

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