Merger of 50% of the DA with the basic......

It has been reported that the government is considering the merger of 50% of the DA with the basic. The government is likely to take a decision during the budget session of Parliament in February 2014. The information was given by sources close to the Central Government Employees Federations. The federations were demanding the merger from January 2011. 

During the 5th pay commission period there was a clause that the DA will be merged with the basic once it touches 50%. But this was removed by the 6th pay commission. However the unions were constantly demanding the merger. The current DA stands at 90% and is likely to touch or cross 100% by January 2014, which will be announced in March. he government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Once the AICPIN for Industrial workers for the Month of December 2013 is announced, the rate of dearness allowance to be paid from January 2014 can be calculated. It is certain that the rate of DA will be 100 or 101% with effect from 1st January 2014. (Read : November CPI IW up by 2 points, at 243. Chances of 101% DA from Jan 2014) After the DA increased to 100%, the demand merger willbe stronger. Probably the demand would be for 100% DA merger. So the unions expect the government may consider 50% DA merger soon.

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.

(This article is based on unconfirmed reports. Reader discretion is advised)

source:staff corner.com