Friday, February 21, 2014

Merger of 50% DA with Pay and grant of Interim Relief - NFIR

Merger of 50% DA with Pay and grant of Interim Relief - NFIR

National Federation of Indian Railwaymen

No.II/95/Pt. VI
Dated: 20/02/2014
The General Secretaries of
Affiliated Unions of NFIR.

Sub: Merger of 50% DA with Pay and grant of Interim Relief.

NFIR has been writing to the Government of India (including Prime Minister, Finance Minister etc) for merger of 50% DA with pay through its letters dated 10/01/2013, 05/08/2013, 27/09/2013. Also in its 27th National Convention held at Visakhapatnam from 10th  to 12th December, 2013, the Federation had passed a resolution demanding merger of 50% DA with Pay and grant of interim relief to employees of Central Government including Railway employees.

NFIR feels happy to convey that the Central Government has conceded the demand of the employees raised by the Federation.

Union Cabinet is likely to consider the issues to day for taking final decision. Federation will advise decision when taken by the Government. Federation expects that there may be Good News for all Central Government employees very soon.

Yours faithfully,
General Secretary
Source: NFIR


The methodology adopted for compensating the erosion in the real value
of wages had been the merger of DA with Pay. The 5th CPC had recommended
that the DA must be merged with pay and treated as pay for computing all
allowances as and when the percentage of Dearness compensation exceeds
50%.Accordingly even before the setting up of the 6th CPC the DA to the
extent of 50% was merged with pay. Presently, the Dearness compensation is
100% as on 1.1.2014.
As on 1.1.2011, the DA was at the rate of 50%.The suggestion for
merger of DA to partially compensate the erosion in the real wages
was first mooted by the Gadgil Committee in the post 2nd Pay
Commission period. The 3rd CPC had recommended such merger when the
Cost of Living index crosses over 272 points i.e.72 points over and
above the base index adopted for the pay revision. In other
words, the recommendation of the 3rd CPC was to merge the DA when it
crossed 36%.
The Govt. in the National Council JCM at the time of negotiation
initially agreed to merge 60% DA and later the whole of the DA
before the 4th CPC was set up. The 5th CPC merged 98% of the DA
with pay. It is, therefore, necessary that the Govt. takes steps to
merge 50% of DA with pay for all purposes to compensate the
erosion of the real value of wages of Central Govt. Gazetted
Officers and employees.

See Free Ac checkup scheme for Govt employees posted in Noida and Delhi

What is the fate of the letter under reference written by General Secretary NFIR to General Secretaries of other Affiliated Unions of NFIR especially with regard to paragraph 2 of the letter wherein the General Secretary has clearly agreed that Government has conceded the merger demand of Central Government employees and pensioners. Where is the Government announcement/order in question. If there any deal between General Secretary and Government. The victimized government employees and hapless pensioners would like to know the inner story of this episode.

No good news received so far....

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