Tuesday, May 21, 2013

Merger of 50% DA issue: Dearness Allowance as Dearness Pay

GOVERNMENT OF INDIA
MINISTRY OF  FINANCE
RAJYA SABHA

UNSTARRED QUESTION NO-4384

ANSWERED ON-07.05.2013

Dearness Allowance as Dearness Pay

4384 . SARDAR BALWINDER SINGH BHUNDAR

   (a) whether the earlier Pay Commissions for Central Government Employees had recommended that a certain percentage of Dearness Allowance to be treated as Dearness Pay;

   (b) if so, the details thereof; and

   (c) by when the salaried class as well as pensioners are likely to be benefited so as to overcome the hardship being faced by them to maintain their day-to-day household expenses?

ANSWER

   Minister of State in the Ministry of Finance (E & FS) (Shri Namo Narain Meena)

   (a)&(b) The 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

   (c) The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.

Source: www.rajyasabha.nic.in

1 comment:

  1. 1] FIRSTLY IT IS DUTY OF GOVT[FM] TO TAKE CORRECTIVE ACTION ON ANY REPORT .IN CASE 6th CPC HAS NOT RECOMMENDED THEN IT IS DUTY OF GOVT TO INCORPORATE IN THE REPORT. SO KINDLY MERGE 505 DA wef 1/1/2011.2[ SECONDLY IF GOVT[FM] ARE SHIELDING THEMSELVES ON BASIS OF REPORT THEN GOVT IS IMPLEMENTINGAppeal for Implementation of Judgement of Delhi High Court in WT 1535-2012 – Upholding CAT Judgement in OA 655-2010 and- “Quashing” DOP OM dated 3-10-2008 & 14-10-2008.Only on account of an illegal and unjust “Clarificatory” order issued bythe DOP&PW (vide OM dated 3-10-2008) – mis-interpreting the decision of the Union Cabinet on Sixth Pay Commission recommendations vide GOI Resolution published vide MOP (DOP&PW) No 38/37/08-P&PW (A) dated 29-8-2008.2. a) The said order of DOP(P&PW) dated 3-10-2008, has since been quashed by as many as 11 (Eleven) different Benches of CAT as wellas by Punjab & Haryana High Court (in 40 Casesfiled by different Applicants)2. b) Full Bench of Central AdministrativeTribunal (CAT) Principal Bench New Delhi, had held as under in OA 655-2010 decided on 1-11-2011,30. Clarificatory OM dated 3.10.2008) and. Respondents are directed to re-fix the pension of all pre-2006 retireesw.e.f. 1.1.2006, based on the resolution dated 29.08.2008 and in the light of our observations made above. Let the respondents re-fix the pension and pay the arrears thereof within a period of 3 months from the date of receipt of a copy of this order.OAs are allowed in the aforesaid terms, with no order as to interest and costs.”3. Petition of the Government of India (against the judgement of CAT New Delhi in OA 655– 2010), has been “Dismissed” by a Division Bench of Delhi High Court in WP 1535 – 2012 vide its judgement Dated 29-4-2013, where in Delhi High Court has upheld the said judgement of CAT 2.and has concurred with the Judgement of the Punjab and Haryana High Court in W.P.(C)No.19641/2009 R.K.Aggarwal & Ors. Vs. State of Haryana & Ors.and has held as under:“8.Punjab & Haryana High Court and adopt the same and do not burden ourselves anyfurther. We conclude by noting that as regards the substance of the view taken by the Tribunal, even the Central Government accepts its correctness, but insists to make the same applicable prospectively.9. The writ petitions are dismissed. The decision of the Full Bench of the Tribunal isupheld but without any order as to costs.”
    4. With the above cited verdict of Delhi High Court, it is very clear that the pension has to be re-fixed in accordance with Resolution dated 29-8-2008 w.e.f. 1-1-2006 as per the directive of CAT.5. MOP(DOP&PW) vide its OM No F.No.38/37/08-P&PW(A) dt 28.01.2013, had already
    accepted the above principle prospectively from 24-9-2012, and ordered as under:“2. --------- pension of pre-2006 pensioners as revised w.e.f. 1.1.2006 in terms of para 4.1 or para
    4.2 of the aforesaid OM dated 1.9.2008, as amended from time to time, would be further steppedup to 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to
    the pre-revised pay scale from which the pensioner had retired, as arrived at with reference tothe fitment tables annexed to the Ministry of Finance, Department of Expenditure OMNo.1/1/2008-IC dated 30thAugust, 2008.”
    “9. These orders will take effect from the date of approval by the Government, i.e. 24.9.2012.”
    6. Keeping in view the various judgements of CAT & High Courts cited above, subjecting
    7. It is, therefore, requested that the minimum Pension of Pre 2006 Pensioners as fixed in
    OM dated 28-1-2013 be made effective from 1-1-2006 and suitable directive may please be
    issued for payment of arrears at the earliest as per judgment of Full Bench of Principal
    Bench CAT (Central Administrative Tribunal) as upheld by Delhi High Court

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