Cabinet Approved 10% Hike in Dearness Allowance from January 2014 in few minutes Today.

Cabinet Approved 10% Hike in Dearness Allowance from January 2014

100% Dearness Allowance for Central Government employees and Pensioners with effect from 1.1.2014

The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2014 representing an increase of 10% over the existing rate of 90% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

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Posted on Fri, Feb 28th, 2014, in D.A.. Bookmark the permalink. 2 Comments.

  1. ALL INDIA DRDO TECHNICAL OFFICERS ASSOCIATION

    GOVERNMENT REFUSED TO ACCEPT THE MAIN DEMANDS OF THE CENTRAL GOVERNMENT OFFICERS & EMPLOYEES.

    CONFEDERATION OF CENTRAL GOVT.GAZETTED OFFICERS ORGANISATION(CCGGOO) CALLS UPON THE ENTIRE CG OFFICERS & EMPLOYEES TO PROTEST AGAINST THE ARBITRARY AND UNILATERAL DECISION OF THE GOVERNMENT.

    The Government has not decided to grant Interim Relief and merger of
    Dearness allowance. Nor has it asked the Commission to consider and make
    appropriate recommendation in this regard specifically. Inclusion of a
    labour representative in the Commission being not an idea the UPA
    Government cherishes, for it is diametrically opposite to its economic
    policies and ideology, they have stuck to the position of sandwiching the
    Honourable Judge with bureaucrats. Our demands for parity between the past
    and present pensioners and scrapping of the new pension scheme also stand
    rejected.
    As you are aware, the 6th CPC (and the earlier Commissions also)
    had refused to entertain the demand for removal of anomalies
    despite Government referring the same to the Commission
    specifically. Therefore, the omnibus clause in the terms of
    reference requiring the Commission to submit interim reports may
    not be of any help to us to raise the anomalies before the 7th CPC.

    At the conclusion of the meeting held by Secretary, DoPT, with the staff
    side on terms of reference of the 7th CPC, it was agreed that the
    Government will consider our suggestion in the matter and will convene
    another meeting with the presence of Secretary (Expenditure) to iron out
    the differences, if any, and explore the possibilities of an agreement in
    the matter. But no such meeting was convened and no attempt was made by
    the official side to arrive at an agreed Terms of Reference.

    CCGGOO CONDEMNS THE ATTITUDE OF THE GOVERNMENT IN NOT HONOURING ITS
    COMMITMENT OF HOLDING DISCUSSION WITH THE STAFF SIDE BEFORE FINALISING
    THE TERMS OF REFERENCE OF THE 7TH CPC AND DEMAND IMMEDIATE ACCEPTANCE
    OF :
    (1)Interim Relief
    (2)Merger of DA
    (3)Date of effect from 1/1/2011
    (4)Parity in pension entitlement between the past and present pensioners.
    (5)Coverage of the existing defined benefit pension scheme to employees
    recruited on or after 1.1.2004.
    (6)Include a representative of the Labour in the 7th Central Pay Commission.
    (7)Settle the anomalies

  2. ALL INDIA DRDO TECHNICAL OFFICERS ASSOCIATION

    Confederation of Central Government Gazetted Officers’
    Organisations (CCGGOO) is disappointed to note that our
    demand for five years wage revision w.e.f. 01.01.2011 and
    merger of DA with Pay has not been considered favourably by
    the Government. When the public sector employees are given
    five years wage revision and the erosion in real wages has
    reached an all time high due to steep price rise, grant of
    five year wage revision to Central Government officers,
    employees and pensioners is fully justified. Similarly every
    time the Government appointed pay commission, merger of DA
    was also granted. This time Government has not acceded the
    demand for merger of DA with pay Even the demand for
    inclusion of a labour representative in the 7th CPC was
    disregarded. Thus by appointing pay commission without
    declaring interim relief, employees will not be getting any
    financial benefit now.
    The methodology adopted for compensating the erosion in the
    real value of wages had been the merger of DA with Pay. The 5th
    CPC had recommended that the DA must be merged with pay and
    treated as pay for computing all allowances as and when the
    percentage of Dearness compensation exceeds 50%. Accordingly
    even before the setting up of the 6th CPC the DA to the extent
    of 50% was merged with pay. Presently, the Dearness
    compensation is 100% as on 1.1.2014.

    As on 1.1.2011, the DA was at the rate of 50%.The suggestion
    for merger of DA to partially compensate the erosion in the
    real wages was first mooted by the Gadgil Committee in the post
    2nd Pay Commission period. The 3rd CPC had recommended such
    merger when the Cost of Living index crossed over 272 points
    i.e.72 points over and above the base index adopted for the pay
    revision. In other words, the recommendation of the 3rd CPC was
    to merge the DA when it crossed 36%.

    The Govt. in the National Council JCM at the time of negotiation
    initially agreed to merge 60% DA and later the whole of the DA
    before the 4th CPC was set up. The 5th CPC merged 98% of the DA
    with pay. It is, therefore, necessary that the Govt. takes steps
    to merge 50% of DA with pay for all purposes to compensate the
    erosion of the real value of wages of Central Govt. Gazetted
    Officers and employees.

    CCGGOO urge upon the Government to declare interim relief, merge
    50% Dearness Allowance with pay for all purposes and revise
    wages w.ef 01/01/2011 failing which the Confederation shall be
    constrained to go for agitational programmes.

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