Dorai focus on two crucial issues of 50% DA Merger and 3% Increment

Dorai focus on two crucial issues of 50% DA Merger and 3% Increment before Empowered Committee

Mr.Dorai, one of our genuine reader has highlighted two important crucial issues before the Empowered Committee of Secretaries for implementation.

1. RETENTION OF 3% INCREMENT IN VII CPC RECOMMENDATIONS IN CASE OF PROMOTION LEADS TO LOWER FINANCIAL BENEFITS BY FEW THOUSANDS THAN THE EXISTING BENEFITS UNDER 6TH CPC RECOMMENDATIONS

2. NON RECOMMENDATION OF VII CPC REGARDING MERGER OF 50% OF D.A. WITH BASIC PAY WHEN D.A. CROSSES 50% IS A GREAT DISAPPOINTMENT

Dear Readers,
In addition to the various genuine demands raised by the various Central Government Employees Federations/Associations with the Empowered Committee of Secretaries, I would like them to bring these 2 important crucial issues before the Empowered Committee of Secretaries for implementation:

1. RETENTION OF 3% INCREMENT IN VII CPC RECOMMENDATIONS IN CASE OF PROMOTION LEADS TO LOWER FINANCIAL BENEFITS BY FEW THOUSANDS THAN THE EXISTING BENEFITS UNDER 6TH CPC RECOMMENDATIONS:

The financial benefit would be much lower than what a government servant would be getting under VI CPC recommendation on promotion, because the existing benefit on promotion carry change in grade pay apart from 3% increase in Pay+Grade Pay. The following illustration shall show the huge difference:

Suppose an employee whose Pay is Rs.10400/- and the Grade pay is Rs. 2800/- totalling to Rs.13200(in the Pay band of 5200-20200), gets his next promotion to the Grade Pay of Rs.4200/- he will be entitled to the following hike in total remuneration under the existing VI CPC recommendation as a result of promotion::

Rs.13200 x 3% increment =Rs.400

Difference in Grade Pay from Rs.2800 to Rs.4200= Rs.1400

Total increase of increment in basic pay and Grade Pay= Rs.1800

D.A. at 125% as on 1/1/2016 on Rs.1800 = Rs.2250

HRA at 30%(assuming X city) on Rs.1800 =Rs.540

Total monetary benefit = Rs.4590/-

Whereas the net monetary benefit under VII CPC recommendation, as a result of promotion in the above case will be much lower than the above illustration as shown under:

Equivalent Basic Pay for Rs.13200 come to Rs.33900 as per pay matrix
Rs.33900 x 3% increment =Rs.1017(placed at Rs.35,400 as per pay matrix in the next level)

Total difference Rs.35400 – Rs33900 =1500

D.A. at 0% as on 1/1/2016 on Rs.1500= 0

HRA at 24%(assuming X city) on Rs.1500 =Rs.360

Total monetary benefit = Rs.1860/-only as against the existing Rs.4590/- leading to shortage of Rs. 2730/-

This is a big blunder committed by the VII Pay commission.

Therefore the increment on promotion should be atleast 5 to 6% to bring the benefit of increment on promotion to the existing level.

Whether increase of percentage for annual increment is considered or not, but increment of percentage for promotions definitely need to be implemented to bring the level of monetary benefit to the existing level.

2. NON RECOMMENDATION OF VII CPC REGARDING MERGER OF 50% OF D.A. WITH BASIC PAY WHEN D.A. CROSSES 50% IS A GREAT DISAPPOINTMENT:

The long standing demand of the central government employees for merger of 50% D.A with basic was not implemented by the government on the excuse that the VI CPC had not made such a proposal. Even the VII CPC is totally silent about this aspect. It appears no one has demanded the same before the VII CPC for consideration.

It is quite surprising that such a vital issue of non-recommendation of merger of D.A with basic pay when D.A crosses 50% is not being opposed by any central government associations or pointed out by the media.

Had it been recommended by the VII CPC, the government shall definitely implement the same and the benefit of hike in salary as a result of merger of D.A with basic when it cross 50%, would be so vast that no government servant would crave for timely setting up of next VIII Central Pay commission.

For further details readers may refer to my article “7th Pay Commission recommendations are far beneficial than all the Pay Commissions so far except few flaws” which is appearing in various central government portals like 7th CPC News.in (7thpaycommissionnews.in), GovtEmpDiary, Central Government Employees News & Tools, etc.

M. DORAI
Deputy Director
ESIC Model Hospital
(Ministry of Labour, Government of India)
Rajajinagar,
Bangalore

More articles from Mr.Dorai

7th Pay Commission recommendations are far beneficial than all the Pay Commissions so far except few flaws

Multiplication Factor appears in the Matrix Table for the new entrants at the entry level

Latest News on DA Merger for CG Employees:

• 50% DA Merger and Retirement Age 62 – High hopes fading due to announcement of election dates… January 20, 2025
• Cabinet Approves Merger of DA with Basic Pay January 20, 2025
• 50% Merger of DA and Retirement Age 62 – No discussion in the Cabinet Meeting January 20, 2025
• Whether 50% DA Merger will be approved or not..? January 20, 2025
• 7th Pay Commission can suggest the Merger of DA in its interim report… January 20, 2025
• Can the govt servants get 30% Salary hike on account of 50% DA Merger? – An analysis January 20, 2025
• Expectations for 50% DA Merger and Retirement age turn into disappointments January 20, 2025
• NMC pleads with seventh CPC for merger of 50% DA January 20, 2025
• 50% Merger of Dearness Allowance with Pay–NFIR Writes to New FM on 28.5.2014 January 20, 2025
• 50% DA MERGER : Merger of DA with Pay and sanction of Interim Relief for the Central Government Employees January 20, 2025
• Feedback of meeting with Cabinet Secretary–Regarding of DA Merger & Interim Relief January 20, 2025
• Demand for 50% DA Merger presented to the new government January 20, 2025
• PENDING DEMANDS OF CG EMPLOYEES AND NEW GOVERNMENT – CONFEDERATION NEWS January 20, 2025
• Demands for DA Merger & Interim Relief strengthen Once again…NC JCM Staff Side emergency meeting on October 12 January 20, 2025
• DA to CPSE Employees from Jan 15 – 273% and 223% without and with 50% DA Merger January 20, 2025
• Seeking Merger of DA and Oppose reduce the Retirement age – DPCC January 20, 2025
• 50% DA Merger and Retirement age 58 : Rumor Spreading in Social Networks January 20, 2025
• Dorai focus on two crucial issues of 50% DA Merger and 3% Increment January 20, 2025
• Merger of Dearness Allowance equal to 50% of basic pay from April 2004 for Running Staff – Railway Board January 20, 2025
• Merger of DA with the Basic Pay from April 2004 to Running Staff – NFIR Letter Dated 30.3.2021 January 20, 2025
• DA 50% from Jan 2024 – Looks Promising! January 20, 2025
• AICPIN plays like seesaw! – What happens next? January 20, 2025
• DA 50% in Jan 2024 – List of Allowances to be Hiked! January 20, 2025
• Negation of the promises – Granting Interim Relief-Merger of DA, LTC by Air and Exemption of Income Tax January 20, 2025
• Merger of Dearness Allowance with the Basic Pay 1.4.2004 January 27, 2024
• Merger of 50% DA/ DR with Basic Pay/ pension, effectively amounting to 78.2% DA/ DR for the purpose of fitment – BSNL Orders issued April 3, 2023
• Merger of Dearness Allowance with the Basic Pay – Computation of emoluments of Running Staff for granting retirement benefits October 20, 2016
• 6th Pay Commission Dearness Allowance ends with 6% hike at 125% March 25, 2016
• Merge DA with Basic this year and Defer Increments: Pay Panel Member February 15, 2016
• Denial of interim relief and the benefit of merger of DA with Pay must be viewed very seriously – NC JCM June 22, 2015
• Order for Merger of 50% DA, Retirement age news goes viral in Social Media May 5, 2015
• NC JCM writes to PM regarding the pending demands of Central Govt Employees – DA Merger, NPS, Interim Relief, Promotion and Bonus issues May 1, 2015
• Pensioners seek 50% da merger and Bus travel concession April 16, 2015
• Meeting with 7th Pay Commission and DoPT on 25.2.2015 – Confederation publishes brief resume of the discussions February 27, 2015
• JCM Staff Side Meeting with 7th Pay Commission – Discussion about DA Merger and Interim Relief February 25, 2015
• NFIR – 55 Point Charter of Demands Including DA Merger, Interim Relief and Scrap NPS February 24, 2015
• Meeting between JCM Staff Side & 7th Pay Commission – Discussion on DA Merger & Interim Relief – NFIR February 19, 2015
• Decisions taken National Joint Council of Action meeting held on 16.02.2015 on 7th CPC, DA Merger issues February 17, 2015
• NMC urges FM to raise IT exemption limit to Rs 5 lakh, exclude DA from IT calculation, Merge DA in Basic Pay & Pension etc. February 16, 2015
• Central Govt refused Interim Relief and DA Merger – Assured for 7th CPC Report on time January 29, 2015
• Central Trade Unions submits Joint Memorandum including DA Merger and 5 Lakh IT Exemption to Finance Minister January 21, 2015
• Staff Side NC JCM writes to Cabinet Secretary for Interim Relief, Merger of DA January 13, 2015
• Will the 7th Pay Commission present an Interim Report to the Centre? December 18, 2014
• National Council Staff Side JCM meets today (11.12.2014) – Eyes of all look expectantly on the demand of DA Merger and Interim Relief December 11, 2014
• NDA AND UP TWO SIDES OF SAME COIN – EDITORIAL POSTAL CRUSADER DECEMBER-2014 December 1, 2014
• Whether 7th Pay Commission proposes to submit Interim Report? November 24, 2014
• DA Merger & Interim Relief – National Convention of NC JCM Meeting on 11.12.2014 – INDWF Circular November 23, 2014
• Government of India is reluctant to consider Merger of DA, Interim relief, scrapping of New Pension Scheme November 19, 2014
• CONFEDERATION MASS SQUATTING ON 18TH NOVEMBER 2014 – PRESS MEET BY TAMILNADU CONFEDERATION November 19, 2014
• DA MERGER – INTERIM RELIEF – DATE OF EFFECT OF 7TH CPC RECOMMENDATIONS FROM 01.01.2014 November 18, 2014
• JCM NATIONAL COUNCIL STAFF SIDE – ALL INDIA CONVENTION ON 11.12.2014 November 1, 2014
• JCM STAFF SIDE UNITY SHOULD BE FOR STRUGGLE October 31, 2014
• National Convention of the NC (JCM Staff Side) for DA Merger and Interim Relief October 28, 2014
• Central Government Employees Federations to observe Protest Day on 5th December October 27, 2014
• National Convention will adopt a joint resolution on DA Merger, Interim Relief October 22, 2014
• National Council JCM Staff Side Meeting Will Be Held Tomorrow October 11, 2014
• Is Interim Relief Likely for Central Government Employees? October 10, 2014
• Urgent meeting of the Staff Side of JCM (National Council) on 12.10.2014 October 5, 2014
• CONFEDERATION DECLARES NEXT PROGRAMME OF ACTION October 2, 2014
• CG Employees Launch Countrywide Stir Demanding 7th Pay Commission Interim Relief September 22, 2014
• DA from July 2014 – Cabinet may declare 7% in this month for CG Staff September 1, 2014
• BRMS demands to merge 50% DA and Grant Rs.7000 as Interim Relief August 16, 2014
• Memorandum of Interim Relief and merger of Dearness allowance–Confederation News July 27, 2014
• NO MERGER OF DA – FINANCE MINISTRY REPLY TO NATIONAL COUNCIL SECRETARY July 3, 2014
• AIRF demanded to the 7th Pay Commission including Merger of DA and Interim Relief May 29, 2014
• Central employees awaiting next govt nod on DA merger March 19, 2014
• CONFEDERATION CALLS FOR PROTEST AGAINST THE ARBITRARY AND UNILATERAL DECISION OF THE GOVERNMENT March 2, 2014
• CABINET APPROVED 10% DA HIKE FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS February 28, 2014
• Merger of D.A., 7th CPC ToR and Raising Retirement age 62–Cabinet will decide today..! February 28, 2014
• Impact of Merger of 50% DA in Basic Pay February 27, 2014
• Retirement Age 62 and 10% DA from Jan 2014 – Cabinet expected to clear on Friday (28.202014) February 26, 2014
• 50% DA Merger, Retirement Age 62 and Interim Relief – Cabinet is likely to clear some of these demands..! February 24, 2014
• 50% DA MERGER – Impact of merger of 50% DA with basic pay February 24, 2014
• Central Government employees may get 50% DA merger – BSNL Employees Union February 24, 2014
• Central Government employees may get 50% DA merger February 23, 2014
• Central Govt to pay the Dearness allowance for state government employees February 23, 2014
• Merger of 100% DA w.e.f. 1.1.2014 and Merger of 50% DA w.e.f. 1.1.2011 February 21, 2014
• AIRF Demanding Merger of 100% Dearness Allowance with Basic Pay February 21, 2014
• Merger of 50% DA with Pay and grant of Interim Relief – NFIR February 21, 2014
• Inclusion of DA Merger and Interim Relief in 7th CPC ToR – Cabinet likely to approve 7th CPC ToR February 20, 2014
• 50% DA MERGE OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES February 17, 2014
• Latest 50% DA Merger News February 4, 2014
• Merger of Dearness Allowance with Pay January 30, 2014
• Merger of 50% DA will soon be considered by Central Government Before the Budget Session… January 17, 2014
• Retirement Age 62, Merger of DA, Scrapping of NPS, inclusion of federation leaders in 7th CPC etc. – Memorandum submitted to PM January 8, 2014
• Merger of Dearness Allowance with the Pay of the Central Government Employees – reg. November 13, 2013