Any possible to
convert 50% of dearness allowance to dearness pay..!
Everyone’s pointing
fingers at “Parliament Election”…!
50% DA MERGER
In the year 2004, 50%
of dearness allowance was merged with basic pay for Central Government
Employees and Pensioners with effect from 1.4.2004. This was implemented as per
the recommendation of 5th Central Pay Commission and the Union Government had
decided to merge 50% of dearness allowance with basic pay and issued orders on
1.3.2004. The DA was 61% at that time. (61% – 50% = 11%) 50% of dearness
allowance was merged with basic pay and the remaining 11% was issued as normal
dearness allowance with effect from 1.1.2004.
Example : An
employee’s Basic Pay had revised as under on 1.1.2004 after 50 % DA merged with
basic pay…
Basic Pay
|
Dearness allowance 61%
|
Total
|
Basic Pay
|
Dearness Pay
|
Remaining percentage of Dearness allowance
11%
|
Total
|
Difference
|
4000
|
2440
|
6440
|
4000
|
2000
|
660
|
6660
|
220
|
[And the next
installment of additional dearness allowance from 1.7.2004 declared as 3%, then
the total dearness allowance went up to 14%. When implementation of 6th CPC,
the above employee's basic pay was 4200 as on 1.1.2006, it just multiply with
1.86 and add with corresponding grade pay.]
Everybody thinks that
merger of 50% DA is more beneficial…. But it is not like that…….! It is essential to CG
Employees, of course for others also, a regular increase in the basic pay is
needed………! For Example, an employee’s
basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the
calculation is clearly shows the difference 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
|
15100
|
10000
|
5000
|
150
|
15150
|
150
|
“Note
that the 50% of Dearness allowance will not be merged with basic pay, instead,
the amount will be shown as ‘Dearness Pay’. This amount will be payable only
upto the date of implementation of 7th pay
Commission.
This
is only as a advance hike for all employees before the implementation of 7th CPC.
When
fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the
revised pay rules, the amount of ‘basic pay’ will be taken without dearness
pay.
For
example, approximately basic pay of the above employee will be 12,250 as on
1.1.2016 . This amount only will be taken as Basic Pay for the calculation of
pay fixation against the amount of 18,375. The
enhanced amount will be given for us as ‘Interim Relief’ for the period between
announcement and implementation…It is not at all merged with ‘Basic Pay’..!
We can hear, what
about hike in HRA and other entitlements…
The rate of HRA is
provided according to the cities, like 10, 20 and 30%. Not all the employees
are getting 30%. And one more important points is the percentage hike in
HRA will not applicable to those who are living in Government Quarters. In
major metropolitan cities, thousands of employees are residing with Government
Accommodation. They will pay more as HRA to Government and they don’t bother
about increasing in HRA. Transport Allowance is
providing according to their GP and classified cites, the amount is vary from
400 to 3200 plus DA thereon. The DA amount may decrease when 50% of DA merged
with basic pay. So, ultimately hike in
Basic pay only the factor is more beneficial in DA Merger. But in 6th CPC there
was no recommendation to convert dearness allowance as dearness pay each time
the CPI increase by 50% over the base index recommended in pay commission
report.
All Central Government
employees federations are showing maximum effort to achieve the demand of
“Merger of 50% Dearness Allowance with Basic Pay” at this time.
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