Inclusion of DA Merger and Interim Relief in 7th CPC ToR – Cabinet likely to approve 7th CPC ToR
Inclusion of DA Merger and Interim Relief in 7th CPC Terms of Reference – Union Cabinet likely to approve the 7th CPC Terms of Refernce in the next meeting, media sources said.
“To woo central government employees ahead of the general elections, the United Progressive Alliance (UPA) government is expected to ask the Seventh Pay Commission to consider merging 50 per cent dearness allowance (DA) with basic pay of employees.
This will form part of the terms of reference (ToR) for the Commission, to be considered by the Cabinet this week.
According to officials, the Pay Commission’s ToR categorically states a proposal in this regard should be actively considered.
The increases will be even more appealing as the Centre is expected to increase the DA by 10 per cent to 100 per cent by the end of February. Usually, the DA is merged with basic pay when the former goes beyond 50 per cent. It is 90 per cent now, but has not been merged so far.
Assuming an employee gets Rs 100 as basic pay and Rs 100 as DA at present, the basic will rise to Rs 150, even if 50 per cent allowance is merged. . A higher basic pay will also impact the house rent allowance (HRA) of employees as it is calculated at 30 per cent of the basic pay for central government employees.
DA is linked to the consumer price index (industrial workers). The government uses CPI-IW data of the past 12 months to arrive at a quantum for calculating any DA hike. The allowance will be announced from January. As such, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter. The average inflation during this period had stood at 10.66 per cent.
Earlier this month, the government had constituted the Pay Commission under the chairmanship of former Supreme Court Judge Ashok Kumar Mathur.
The other members of the panel are Petroleum Secretary Vivek Rae (full-time member), National Institute of Public Finance and Policy Director Rathin Roy (part-time member) and Officer on Special Duty in the Expenditure Department Meena Agarwal (Secretary).
The Commission’s recommendations would be implemented from January 1, 2016, officials said. However, it may recommend interim relief as well, they added.
The Commission’s recommendations will directly benefit almost five million employees and three million pensioners. Employees of state governments, which will adopt the recommendations of the 7th Pay Commission will also benefit.
Some officials said the Cabinet is also expected to consider another proposal to modify the Prime Minister’s 15-point programme for minorities, which will enable allocation of at least 15 per cent of the total funds for welfare of minorities in major programmes such as National Rural Health Mission, Rashtriya Mahila Shiksha Abhiyan, Employment and Skill Development”.
Source: www.business-standard.com
http://www.business-standard.com/article/economy-policy/centre-plans-big-bonanza-for-central-govt-employees-114021901256_1.html]
Sunil Sharma says
it will better if government provide more job opportunity for youngsters rather increase retirement age and announcing election freebees, other our young generation without job will revolt
Ashim Majumder says
unemployed youngers will be demoralised if govt approve for increasing retirement age of central govt employee.
Ram Anuj Saadh says
it will better if government provide more job opportunity for youngsters rather increase retirement age
Arjun Kumar says
I would like to ask the government why DA was not merged with basic pay when it reached to the level of 50%. It is long overdue. Now, the government should approve 100% merger with Basic pay for Central government employees and pensioners. That will be the real benefits to government employees and pensioners. At this point of time, ahead of parliamentary election, government is just distributing peanuts to government employees and pensioners. What our union leaders were doing since 1.1.11 ( when DA reached to the level of 50%., The NDA government announced it without any demand from employees side. Now the employees are clamoring for merger since long and government is not paying any heed to their just and legitimate demands.
Urvashi Roy says
It's good but hra should be delinked from basic pay & made constant