Govt likely to increase and merge dearness allowance with basic pay- The Times of India

Govt likely to increase and merge dearness allowance with basic pay- The Times of India

The government may increase and merge dearness allowance (DA) with basic pay with the Union Cabinet expected to include the proposal as part of the terms of reference of the 7th pay commission. 

The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly-constituted pay commission before the code of conduct for the Lok Sabha polls come into force. 

Central government employees unions have been demanding that besides raising DA to 100%, the government should revise the pay and merge DA with basic pay, considering market inflation and price hike of essential commodities.

As per practice, DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay. 

An official said if merger of 50% DA with basic pay was decided, it could lead to hike in salary by around 30-35%. He added that there were instances of announcing interim relief to employees apart from DA by a newly constituted pay commission prior to their implementation. 

Merger of 50% DA with basic pay was done in the 5th pay commission, but the 6th commission did not recommended it. 

The Centre is expected to announce next month a hike in dearness allowance by 10% which would make it 100% of basic pay. It will be the second double digit DA hike in a row as the government had announced a hike of 10% in September last year, effective from July 1, 2013. 

An official said hike in DA will not be less than 10% and would be effective from January 1 this year. 

Source :

Retirement age increases to 62 for Central Government Employees

Retirement age increases to 62 for Central Government Employees 

As the election dates for Lok Sabha 2014 is proceeding nearer, Congress Government is coming up with several attractive offers. In order to passify Telangana issue and to attract 11 millions employees and pensioners. Government in its next Cabinet meeting is going to extend retirement age from 60 to 62 for all Central Government employees. 

As recommended in the Seventh pay commission key features in section 128.18, recommendation of increasing the age of superannuation to 62 has been accepted by the Government after receiving the memorandum no 25012/B/14 -Est. -A. The the next cabinet meeting the decision will be taken for the same.

When 62 years of retirement age for Central Government Employee will be effective

The Seventh pay commission will be effective from 1st January 2016. Now the question is from what date superannuation at 62 years for Government employee will be effective?

As per the media report and read in newspaper Government had agreed for implementation of 62 years and will be effective from 1st Feb 2014. In next Cabinet meeting this will be finalized and declared. Since code of conduct will be effective from 1st week of March it is expected that meeting will be held in the month of February only and there will be a final decision on superannuation age as well as on Dearness Allowances from Jan 14 and merger of pay. If the decision is taken within this week the effect of superannuation will be from 1st Feb 2014. However still the final decision of Cabinet meeting is not yet announced as the Government is at present engaged in passing various controversial bills including the one of Telangana to capitalize the votes for Lok Sabha election 2014.

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