DA Merger News Central Government Employees and Pensioners

DA Merger News Central Government Employees and Pensioners

 Compiling of Question and Answers about the news of “50% DA MERGER” to Central Government Employees and Pensioners – Hon’ble Parliament Members asked frequently about the expectation of 50 per cent Dearness allowance merging with basic pay to all CG Staff and Pensioners in Parliament (both Lok Sabha and Rajya Sabha) and the concerned minister has replied to these questions, we are compiling here for your information…


LOK SABHA
UNSTARRED QUESTION NO 3442
ANSWERED ON 30.08.2013

Minister of State for Finance said in the Lok Sabha on 30th August 2013 that “some Central Government Employees Associations have been demanding for the merger of 50% Dearness Allowance with Basic Pay and for constitution of 7th Pay Commission. The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government accepted this recommendation vide its Resolution dated 29.08.2008. The recommendations of the previous Pay Commission i.e. 6th Central Pay Commission, were given effect from 1.1.2006. The setting up of next Pay Commission is considered normally after a gap of 10 years between two successive Pay Commissions. Hence the question of delay does not arise.

Dearness Allowance to Central Government employees is revised twice a year w.e.f. 1st January and 1st July, calculated on the basis of percentage increase in All India Consumer Price Index for Industrial workers”.


RAJYA SABHA
UNSTARRED QUESTION NO-4384
ANSWERED ON-07.05.2013

The below information was submitted by the Minister of State for Finance Shri Namo Narian Meena in Rajya Sabha on 7th May 2013 that the 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.


RAJYA SABHA
UNSTARRED QUESTION NO-4385
ANSWERED ON-07.05.2013

Minister of State for Finance said in the Rajya Sabha on 7th May 2013, the 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. There is no time frame/date prescribed for announcement of Dearness Allowance. The revision of rate of Dearness Allowance is announced by the Government as and when approved by the Cabinet.


RAJYA SABHA
UNSTARRED QUESTION NO-3139
ANSWERED ON-23.04.2013

There is no fact in dearness allowance is merging with basic pay after it crossed 50% level, the Minister of State for Finance Shri Namo Narain Meena said in the Rajya Sabha on 23rd April, 2013 and he also said that the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.


LOK SABHA
UNSTARRED QUESTION NO 5245
ANSWERED ON 26.04.2013

Shri Namo Narain Meena said in the Parliament on 26th April 2013, there is no proposal to merge 50% of Dearness allowance with basic pay and he also said that the 6th Central Pay Commission had recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.


RAJYA SABHA
UNSTARRED QUESTION NO-1591
ANSWERED ON-12.03.2013

While answering to a question about the overdue of dearness allowance with pay and pension in the Parliament on 12th March, 2013, shri Namo Narain Meena said that no overdue and the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Government of India Resolution dated 29.08.2008.


LOK SABHA
UNSTARRED QUESTION NO 3632
ANSWERED ON 14.12.2012

The below information was submitted as written reply for a question in Parliament on 14th December 2013 as follows…

A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

Merger of DA with pay and grant of interim relief and Date of effect of 7th CPC: Confederation Charter of Demands

Merger of DA with pay and grant of interim relief and Date of effect of 7th CPC: Confederation Charter of Demands

 The wage revision of the Central Government employees had always been through the setting up of Pay Commissions. Since the wage revision exercise involves inquiring into various aspects of wage determination and service conditions of the Government employees the Government had been appointing Pay Commissions for it was considered a better suited system. Such inquiry through setting up of Commissions had been a time consuming process. The 3rd, 4th and 5th Central Pay Commissions had taken more than three years to submit their reports. The 6th CPC however, submitted its report in the time frame provided to it i.e. 18 months.

 Since the earlier Commissions had covered many aspects of the principles of wage determination and the periodicity of such revision had come down, the exercise might not now require a longer period of time as was the case earlier. Even then the Commission will have to be given a reasonable time frame to go into the matter judiciously, for the 6th CPC recommendations when implemented has given rise to large number of anomalies and cadre related grievances. The methodology adopted for compensating the erosion in the real value of wages in the interregnum period had always been through the mechanism of merger of a portion of DA. 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.

It is pertinent to mention that even this benefit was denied to the Gramin Dak Sewak (GDS) of the Postal Department. As on 1.1.2011, the Dearness compensation was 65%. 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 crossed 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 Government 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 DA with pay.

The Staff Side of the National Council JCM in its meeting with the Secretary, Personnel convened for the purpose of finalising the terms of the reference of the 7th CPC did raise the issue of merger of DA with pay. Though it was assured that the Government would take a final decision in the matter, the matter was not referred to the 7th CPC, nor did they deem it fit to take an executive decision. Despite the absence of any reference to the 7th CPC, the staff side discussed the issue with the Chairman and other members in the Pay commission. On the basis of the said discussion, a separate memorandum detailing as to how the employees are entitled to the benefit of Interim Relief and Merger of DA was submitted to the Commission.

 The Staff Side was informed of the forwarding of the said memorandum by the Commission to the Government for a decision at their end. The Government is therefore duty bound to take a decision in the matter without further loss of time. 


Source: http://karnmk.blogspot.in/2014/09/explanatory-notes-on-charter-of-demands.html