Showing posts with label 50% DA Merger. Show all posts
Showing posts with label 50% DA Merger. Show all posts

Expected dearness allowance from July 2014

Expected dearness allowance from July 2014

         Recently the issue of 50% DA Merger has reached the peak of expectations. Though the central government knew this development, the govt has knowingly said nothing against or favor of 50% DA Merger. Its silence on this important issue simply added the fuel to the fire of expectation. After the Election announcement, the hope on 50% DA merger is now slowly eroding. Many central government employees Federations expressed their disappointment with 7th CPC Terms of reference and merger of 50% DA was not considered by central government. After this disappointment the central government employees are now getting back to their routines. So they have started thinking about what next..!

        As the rate of dearness allowance from January 2014 has been declared, the necessary order for payment of Additional installment of Dearness Allowance from January 2014 has to be issued by Finance Ministry. The enhanced rate of Dearness allowance will be paid w.e.f .1.1.2014. The enhanced rate will be paid with the disbursement of salary for the month of March 2014. The increase of dearness allowance became due from January 2014 to February 2014 will be paid as arrears.

Let us move on to ‘Expected dearness allowance from July 2014’

what will be the rate of DA from July 2014 ?

          The AICPIN for Industrial Workers for Seven Months from July 2013 to January 2014 have been released by Labour Bureau. The AICPIN for last two Months i.e December2013 and January 2014 have been declined by 4 and 2 points and pegged at 239 and 237 respectively. At present it is quite difficult to predict the trend of the Consumer Price Index for remaining 5 Months, as so many factors like election and policies of new government involved in it.

However, according to these seven months AICPIN, we have three Probabilities …

No
Probabilities
Increase in Dearness allowance from July 2014
Total DA from July 2014
1
If this declining trend continues for remaining 5 Months by 1 or 2 points
3%
103%
2
If it continues with movement between plus or Minus 2 points
5%
105%
3
If it continues with increasing trend by 2 points
7%
107%

According to the AICPIN released till now, the above possibilities have been arrived. As per above prediction the expected dearness allowance from July 2014 will be from 103% to 107%

source : gservants.com

Expectations for 50% DA Merger and Retirement age turn into disappointments

Expectations for 50% DA Merger and Retirement age turn into disappointments
‘All Predictions are governed by the law of probability’. Based on this principle everybody started predict something about 50% DA Merger, Retirement Age and Interim relief. But none of which have materialized.

The print and e- media made the people believe that the central government had done lot of things including above for central government employees. But it was merely media hype. Apart from 7th pay commission approval government had done nothing for central government employees.

There is a saying “Never get too attached to someone, because attachments lead to expectations and expectations lead to disappointments”

But it is not true here in respect of central government employees. They are bound to expect something like 50% DA merger and interim relief from government, as the federations were assured by central government some of their demand would be considered. Based on this assurance they deferred their Strike call for which 85% of employees mandated.

So there is nothing wrong in their expectation from the central government for considering the demands of Merger of 50% DA and granting interim relief.

But central government made this saying true, “Expectations are setting one up for disappointment”

30% salary hike through 50% DA Merger is a Myth !

30% salary hike through 50% DA Merger is a Myth !

A blog writes about the Popular English Daily’s claim that the central government employees  will get 30% Pay hike on account of 50% DA Merger and proves it is wrong..! The write up of that blog is given below..
……It is observed that recently Public Medias are interested to publish the news about pay hike of central government employees.
We all know the Federations of Central Government employees have been holding demonstrations and Struggles to invite the attention of govt to settle their many demands for the past few months. As a result of this Centre has accepted to settle some demands.
One of the main demands laid down before the Central Government by Federations is 50% DA Merger. A Sensational News was spread across the country that a decision on 50% DA merger will be announced in the Cabinet Meeting held last week. But, though there
was no any formal announcement in this regard, the approval of 7th CPC Terms of reference by Government made everyone to think that it will be considered sooner or later.
A Popular English daily published a tabloid news last week, in which The daily claimed that a govt official informed them ‘the govt servants will get 30% Pay Hike on account of Merger of 50% dearness Allowance with Basic Pay.’
Is that true? Let us see with an example
For example, let us consider as if a government servant is working in one of the four metropolitan cities and rendered 10 years’ of service.
His Basic Pay is (7600+2400)10,000
Dearness Allowance 100%10,000
HRA 30%3,000
Transport Allowance (1600+1600)3,200
Total26,200
Rs.26,200 is the maximum total emoluments of this particular Basic Pay. This will not be exceeded at any cost but there are some reasons to make these total emoluments to be lesser than this.
The salary with same basic pay after DA merger
In case the central government agrees to merge the 50% DA with basic pay, then that govt servant can expect a considerable pay hike on account of Merger of 50% DA.
After Merger of 50% DA his Pay will be as fallows
Basic Pay (7600+2400)10,000
Dearness Pay5,000
Dearness Allowance7,500
HRA4,500
Total29,400
Total Hike in Pay (29400 – 26200)3,200
% of Hike is12%
How can one say that he will be getting 30% hike when he is getting only Rs.3200 in addition to his previous salary of Rs.26,200 after 50% DA merger?
Everybody fallowed the particular Daily and started writing that the Government servants will get 30% salary hike after 50% DA is merged with basic Pay. But this example clearly shows that there is no such hike and if the DA is merged with Basic Pay the increase in salary will be only from 8% to 15%
According to their entitlement the percentage of increase will vary, but no one can get 30% pay hike on account of DA merger.

Modest Expectation for 50% DA Merger still on the cards

Modest Expectation for 50% DA Merger still on the cards
The expectations will not subside until the central government makes it clear whether 50% DA Merger will be approved or not. Though there were mixed news about whether 50% DA Merger is approved or not, Railway and Defence Federation’s Leaders told that the 50% DA merger was approved by the Cabinet. A website belongs to an important railway federation also flashed a news confirming merger of 50% DA is approved by the cabinet. Sometime later it changed its stand and removed the flash news

One of the News Media also confirmed that 50% DA is approved by the cabinet. But so far any announcement in this regard has not been come from the Government. Some Leaders of the Federations told, ‘when we had a talk with them, initially the central government agreed in principle to merge the 50% of Dearness Allowance and its decision was expected from the cabinet meeting held yesterday evening. But we are unaware of the reason for the government not announcing its decision.’

Earlier reports claimed that the government was considering 50% DA Merger and increasing retirement age to 62. But a source close to official side said these will be a part of Terms of Reference of 7th Pay Commission and the Panel , however, can recommend this later

Everybody feels, still it is an incomplete picture, as the government has not declared it is done

Source : gservants.com

Centre may raise age of retirement from 60 to 62 years

Centre may raise age of retirement from 60 to 62 years

However, sources confirmed this would not be applicable for employees retiring on February 28

The Cabinet Meeting will be held on 27/2/2014

The cabinet is expected to discuss  the terms and conditions of the panel include a proposal to merge 50 per cent of dearness allowance with basic pay


The Congress-led United Progressive Alliance (UPA) is likely to take a major decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1.

It would be one of the major decisions to be taken by the Cabinet before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5.

“The government may clear the increase in age this week,” said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move.

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28.

The cabinet is expected to discuss a proposal to increase the dearness allowance by 10 per cent from January 1, to make it 100 per cent and merge 50 per cent of the increased dearness allowance with basic pay. The terms and conditions of the panel include a proposal to merge 50 per cent of dearness allowance with basic pay.

The move to increase the retirement age may pressure the states to follow. The department of personnel and training was working on the proposal for quite some time. The Budget estimate on the pension outgo for 2014-15 is Rs 80,982 crore, 0.6 per cent of the gross domestic product.

Source: http://www.business-standard.com

Blogs views on Merger of 50% Dearness Allowance and Retirement age to 62

Blogs views on Merger of 50% Dearness Allowance and Retirement age to 62
 
There was huge expectation among all the central government employees from the Cabinet Meeting held last week; the central Government would announce its decision on the most expected matters like Merger of Dearness Allowance and Increasing Retirement Age to 62. Electronic and Print Media also presumed that the decision on 50% DA merger and Retirement age 62 would be taken in the said cabinet meeting. But central government has said nothing against about this matter after the Meeting.
So far no one from government side come forward to say about their stand on these issues. So these things keep the central government employees hope alive. It is expected as everybody hope the central government will announce some important decisions in respect of central government employees this week
 
Recently some blogs have posted some interesting things about merger of dearness Allowance and Retirement age 62.
 
A popular website gservants.com has already posted two articles about Merger of 50% Dearness Allowance and Increasing Retirement Age to 62 on 15-1-2014 and 17-2-2014 respectively.
 
 
 
One of the blog of Central Government Employees News CGEN.IN forecasted about Merger of Dearness Allowance
 
If the 50% DA is merged with Basic Pay with effect from 1.1.2011, The benefit will be as fallows..
For Example, a govt servant was getting Rs.10000 as basic pay as on 1.1.2011, after merging of 50% dearness allowance the calculation  clearly shows the increase in salary was only 50 rupees per month…
 
Basic Pay
Dearness allowance 51%
Total
Basic Pay
Dearness Pay
Remaining percentage of DA 1%
Total
Difference
 
10,000
5100
15150
10000   
5000      
150
15100
150
 
 
The HRA is not included in this calculation, since the amount of HRA will be paid as per the entitlement of Government Servants.
 
The blog ‘paycommissionupdate.blogspot.in’ presumed that the announcement on Merger of Dearness Allowance and Retirement age will be expected by this week..
 
This week may bring cheer to central employees and pensioners
 
Central Govt. employees and pensioners will have some reasons to celebrate this week. The union cabinet is likely to clear some long awaited demands for its staff in the next meeting to be held 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
One more popular website gconnect.in also posted an article on the title " Basic Pay and DA after 50% DA Merger – Estimation"
 
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/-
See more at : Basic Pay and DA after 50% DA Merger – Estimation

Whether Govt. actually merged Dearness Allowance with basic pay today (20/02)

Whether Govt. actually merged Dearness Allowance with basic pay today (20/02) ?

Rumors spread very fast this afternoon that central cabinet approved terms of reference of seventh CPC and agreed to merge 50% of D.A. with basic pay for central employees and pensioners. Some of the popular websites and media sites started flashing this news. A cabinet meeting did took place today but according to sources, it was not discussed in the meeting due to paucity of time. 

Merger of D.A., granting interim relief and enhancing superannuation age are definitely being actively considered by the Govt. but nothing has been materialized as of now.

F.M. is proceeding to Australia for a five days official tour and it is most likely that cabinet will take any decision only after his return from abroad. So good news may be expected in the next weekend. 

50% DA Merger in Terms of Referance of 7thCPC- Latest Position

50% DA Merger in Terms of Referance of 7thCPC- Latest Position


Almost all the News Media are telling that Central Government is considering the demand of Merging 50% dearness allowance with basic pay. It was expected that the decision of the Cabinet committee on economic affairs would be announced after its meeting held yesterday. But  there is no any decision in this regard has been taken in that meeting.

Confederation of central government employees and workers has informed through its blog www. [http://confederationhq.blogspot.in/ ]that DOP&T has finalized the terms of reference of Seventh Central Pay Commission and submitted to Cabinet for approval. Details of the terms of reference finalized by DOP&T are not disclosed to the staff side. Details will be known only after the Cabinet meeting which is likely to be held today evening or tomorrow. (Date of Cabinet Meeting not confirmed).

In the meeting held with Secretary, DOPT on 24.10.2013 to discuss the possible Terms of Reference, the Standing Committee Members of National Council JCM told the Government that before finalizing Terms of Reference of 7th Pay commission, it should be circulated to the Members of the JCM Members. But It is informed that so far it has not been circulated to them.

The demands which have been triggered more expectation among central government employees are 50% DA Merger, Interim relief and raising retirement age to 62 . So far Central government is not telling anything against about this recently. The report published by news websites and TV Media have suggested that decision on this issue will be announced today positively.

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 : http://timesofindia.indiatimes.com/india/Govt-likely-to-increase-and-merge-dearness-allowance-with-basic-pay/articleshow/30691712.cms


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