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Showing posts with label DA. Show all posts
Showing posts with label DA. Show all posts

Expected DA from July 2014 - Looks like the curiosity surrounding the expected DA is fast receding


Expected DA from Jul 14 - Looks like the curiosity surrounding the expected DA is fast receding..!

One of the possible reasons for the dampening interest could be the fact that unlike last time, there is not going to be a DA hike. Although it is very well known that the hike is based on price rise and inflation, it probably feels to them as if something was lost.

This time there is no double-digit increase. It is only going to be a single-digit hike.

At the most, one can expect an increase of 7%. That too is not for sure. All that depends on the soon-to-be announced AICPIN points for balance months.

After announcing the second additional DA for the year 2014, there are only two instalments left. With the instalments of January 2015 and July 2015, the 6th CPC comes to a close.

The next additional DA will be based on the 7th CPC.

Additional Dearness Allowance formula could be changed in the 7th CPC. They could announce a new Base Year. There could also be a change in the 115.76 yardstick. Nothing can be said for certain this time.

There is already a proposal to change the Labour Bureau Base Year from ‘CPI-IW 2001=100’ to ‘CPI-IW 2015 =100’.  The current series of CPI-IW with base 2001=100 was constructed on the basis of employment data in seven sectors namely, Registered Factories, Mining, Plantations, Ports & Docks, Public Motor Transport, Electricity Generation & Distribution Establishments and Railways sector. The current series comprises of a basket of about 370 items and 289 price collection markets spread across 78 centres of the country.

The new series of CPI-IW will cover 7 sectors and 88 cities in 27 states have been selected for the new recommendation of CPI-IW (2015-100). It is worth mentioning that a special Standing Tripartite Committee (STC) under the chaired by Prof. G.K. Chadda has been created in this regard.

DA Table for the last one year…


Mon/Year
AICPIN
App. DA
DA
DA Hike
Dec-12
219
80.83
80
8
Jan-13
221
82.49
82

Feb-13
223
84.22
84

Mar-13
224
85.87
85

Apr-13
226
87.38
87

May-13
228
88.97
88

Jun-13
231
90.62
90
10
Jul-13
235
92.28
92

Aug-13
237
93.93
93

Sep-13
238
95.59
95

Oct-13
241
97.32
97

Nov-13
243
99.12
99

Dec-13
239
100.56
100
10

Merging of DA with basic pay of Central Government employees - Rajya Sabha News

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA
UNSTARRED QUESTION NO-2062

ANSWERED ON-11.02.2014

Merging of DA with basic pay of Central Government employees

2062 . SHRI PRABHAT JHA, ARVIND KUMAR SINGH, KUSUM RAI
Will the Minister of FINANCE be pleased to state:

(a) whether Government is actively considering to merge existing dearness allowance payable to Central Government Employees with basic pay;

(b) if so, the details thereof, and if not, the reasons therefor; 

(c) whether Government has received any representation from employees associations in this regard;

(d) if so, the details thereof and the details of action taken thereon; and

(e) the reasons for delay in constitution of 7th Central Pay Commission?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
( SHRI NAMO NARAIN MEENA)

(a) No Sir.

(b) The 6th Central Pay Commission did not recommend merger of Dearness Allowance with basic pay at any stage. This has been accepted by the Government vide Resolution dated 29th August, 2008. 

(c)&(d) A number of representations have been received from Associations/Organizations of Central Government Employees demanding merger of 50% of Dearness Allowance with basic pay. However, in view of (b) above, the same has not been agreed to. 

(e) The Government has already decided to constitute the 7th Central Pay Commission under the Chairmanship of Justice Ashok Kumar Mathur, Retired judge of the Hon’ble Supreme Court.

Source: http://rajyasabha.nic.in/

Enhancement in the rates of various allowances by 25% consequent upon Dearness Allowance crossing 100%

A.I.R.F.
All India Railwaymen's Federation

4, State Entry Road,
New Delhi-110055
India.

No.AIRF/13 
Dated: March 10, 2014

The Secretary(E),
Railway Board,
New Delhi

Sub: Enhancement in the rates of various allowances by 25% consequent upon Dearness Allowance crossing 100%

Ref.: Railway Board’s letter No.F(E)1/2011/AL-28/18 dated 13.06.2011(RBE No.87) and E(P&A)I-2011/SP-l/Misc.1 dated 13.06.2011 (RBE No.88/2011)

The VI CPC in their report had recommended that certain allowances, viz. Children Education Allowance, National Holiday Allowance, Daily Allowance, Washing Allowance, Breakdown Allowance, Special Compensatory Allowance, Cycle Maintenance Allowance, Fixed Conveyance Allowance, Road Mileage Allowance, Special Allowance to various categories of staff etc. etc.,
should be increased by 25% whenever Dearness Allowance crosses 50%, and this recommendation was duly accepted by the Government of India.

Based on the above recommendation of the VI CPC, these allowances have since been enhanced by 25% w.e.f. 01.01.2011, i.e. from the date, Dearness Allowance having been crossed 50%.

Now, Dearness Allowance has crossed 100% w.e.f. 01.01.2014, there is, therefore, gross justification that the above allowances be further enhanced by additional 25%, as Dearness Allowance has again crossed the value of 50% after enhancement of these allowances w.e.f.01.01.2011.

The Board are, therefore, requested to issue necessary instruction to this effect an early date.

Yours faithfully,
Sd/-
(Shiva Gopal Mishra)
General Secretary

AIRF

30% salary hike through 50% DA Merger - Percentage analysis

Can the govt. servants get 30% Salary hike on account of 50% DA Merger? – An analysis
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
Total
26,200
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 Pay
5,000
Dearness Allowance
7,500
HRA
4,500
Total
29,400
Total Hike in Pay (29400 – 26200)
3,200
% of Hike is
12%
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.

Dearness Allowance has Reached to 100%, Cabinet Committee Approved 10% Dearness Allowance for Central Government Employees and Pensioners

Release of additional installment of dearness allowance to Central Government employees and dearness relief to Pensioners, due from 1.1.2014 

The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2014, in cash, but not before the disbursement of the salary for the month of March 2014 at the rate of 10 percent increase over the existing rate of 90 percent. 

Hence, Central Government employees as well as pensioners are entitled for DA/DR at the rate of 100 percent of the basic with effect from 01.01.2014. The increase is in accordance with the accepted formula based on the recommendations of the 6th Central Pay Commission. 

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs. 11074.80 crore per annum and Rs. 12920.60 crore in the financial year 2014-15 ( i.e. for a period of 14 months from January 2014 to February 2015). 

Source: PIB

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.

Brother,
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,
Sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

Centre to hike DA by 10% for second time, will make it 100%

Centre is likely to announce next month a hike in dearness allowance by 10 per cent to 100 per cent, benefiting about 50 lakh employees and 30 lakh pensioners.

It would be the second double digit DA hike in a row. The government had announced a hike of 10 per cent to 90 per cent in September last year, effective from July 1, 2013.

According to an official source, the preliminary assessment suggests that dearness allowance hike will not be less than 10 per cent and would be effective from January 1 this year.

He said the exact percentage hike in DA could be calculated only when the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for December is released on February 28.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 per cent.

As per practice, the government uses CPI-IW data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

"It would be 10 per cent this time and would be announced in March," Confederation of Central Government Employees President K K N Kutty told PTI.

"Besides, raising DA to 100 per cent, the government should revise the pay and merge DA with basic pay", he said.

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

Kutty informed the central government employees would go on a two-day strike from February 12 and demand pay revision which would be possible through constituting the 7th Pay Commission. The government has announced setting up of the commission last year.

He said: "This DA hike won't help much as actual rise in the cost of living is about 300 per cent as on January 1, 2014. But they would pay us 100 per cent as DA."

Source:http://economictimes.indiatimes.com/news/economy/finance/centre-to-hike-da-by-10-for-second-time-will-make-it-100/articleshow/29757806.cms

DA for Bank Employees increased to 99.90% from February 2014

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS

No.CIR/HR&IR/76/D/2013-14/8778

1st February, 2014

All Members of the Association
(Designated Officers)

Dear Sirs,

Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2014 under IX BPS/Joint Note dt. 27.4.10 

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960-100) for the quarter ended December 2013 are as follows:

Oct 2013 – 5501.04
Nov 2013 – 5546.69
Dec 2013 – 5455.39

Consequently, dearness allowance to employees is payable for 666 slabs for the period February, March & April 2014 i.e. an increase of 25 slabs over the current level.

In terms of clause 7 of the 9th Bipartite Settlement dated 27.04.2010 and clause 3 of the Joint Note dated 27.04.2010, the rate of dearness allowance payable to workmen and officer employees for the months of February, March & April 2014 shall be 99.90% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

We advise banks to pay the difference between the old and revised salary and allowances to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.

Yours faithfully,

K. Unnikrishnan
Deputy Chief Executive

Source:http://www.iba.org.in/Documents/DA.pdf

Merger of Dearness Allowance with Pay

All India Railwaymen’s Federation 
(Estd. 1924)

4, State Entry Road, 
New Delhi-110055 
INDIA

No.AIRF/13
Dated: January 9, 2014

The Secretary(Exp.),
Ministry of Finance,
(Government of India)
North Block,
New Delhi

Dear Sir,
Reg: Merger of Dearness Allowance with Pay

On the persistent forceful demand of the Central Government employees, including Railwaymen, successive Central Pay Commissions were appointed by the Government of India with a view to improve upon wage structure and to grant parity with other employees of the Public Sector Undertakings in the wake of market inflation and price hike of essential commodities. These Pay Commissions, while recommending revised pay structure have also recommended grant of Dearness Allowance on the basis of increase in the Price Index.

The very purpose of compensating the pay with payment of Dearness Allowance is being defeated because of unbridled inflationary pressure on the economy and the consequent steep rise in the price of essential commodities.This has resulted in erosion of the value of the wage, remarkably beyond tolerable limit, as a consequence of which, payment of Dearness Allowance has failed to compensate devaluation of pay.

While Dearness Allowance was merged with the pay on crossing the percentage beyond 50% during V CPC as the actual value of wage devaluated because of market hike to compensate eroded value of the wages besides payment of Dearness Allowance, but this time Dearness Allowance, which has already gone beyond 80% w.e.f. 1st July, 2013, is yet to be merged with the pay.

It would, therefore, be quite appropriate and in the fitness of the thing that Dearness Allowance is merged with the pay for all purposes to compensate the erosion in the wage in the wake of market inflation and steep price hike of essential commodities which are posing serious constraints in the livelihood of the Govern employees in general and the low-paid employees in particular.

Yours faithfully, 

Sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF

Merger of 50% percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source:http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/

DA Merger, 7th CPC & other issues Confederation’s two day’s Strike Call on 12th & 13th February, 2014

CONFEDERATION EXTENDED NATIONAL EXECUTIVE MEETING DECIDED TO  ORGANISE TWO DAYS STRIKE ON 12th & 13th FEBRUARY 2014

CONFEDERATION EXTENDED NATIONAL EXECUTIVE MEETING DECIDED TO ORGANISE TWO DAYS STRIKE ON 12th & 13th FEBRUARY 2014 DURING PARLIAMENT SESSION DEMANDING

Expected DA from Jan 2014 - Additional DA from Jan 2014 likely to hike by 11%

Expected DA from Jan 2014 - Additional DA from Jan 2014 likely to hike by 11% 

The one more and another additional Dearness allowance to Central Government employees and Pensioners from Jan 2014 will be announced in the middle of March 2014. 

This is too early and predict the enhancement in percentage of Dearness allowance with effect from January 2014. The prediction and announcement of this hike make us cool, that the additional DA will jump to 101% and another word, an additional DA would be 11%. 

But, still we have to wait for one more month, that the magic number of AICPIN would be increased by 3% and more..! From the existing level of the AICPIN is now 243, if it becomes 246 in end of December 2013, out prediction will be right…or otherwise certainly we would cross century in total Dearness allowance… 

The table describes the prediction of additional DA from Jan 2014…

Month
Year
AICPIN (IW) BY 2001=100
Points Increasing in AICPIN 
Total
Average
App. DA
DA
Jun
2013
231
3
2648
220.67
90.62
90
Jul
2013
235
4
2671
222.58
92.28
Aug
2013
237
2
2694
224.5
93.93
Sep
2013
238
1
2717
226.42
95.59
Oct
2013
241
3
2741
228.42
97.32
Nov
2013
243
2
2766
230.5
99.12
Dec
2013
Expected 246
3
2793
232.75
101.06
101


Source :
http://7thpaycommissionnews.in/expected-da-from-jan-2014-additional-da-from-jan-2014-likely-to-hike-by-11/