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You are here: Home / 50% DA Merger / Dorai focus on two crucial issues of 50% DA Merger and 3% Increment
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Dorai focus on two crucial issues of 50% DA Merger and 3% Increment

April 25, 2016 admin 2 Comments

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

Also Check: Expected DA Calculator from July 2022

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

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Also Check: Central Government Pay Matrix Table 2022 PDF
Related updates:

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    Merger of 50% DA with Pay and grant of Interim Relief – NFIR
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    Decisions taken National Joint Council of Action meeting held on 16.02.2015 on 7th CPC, DA Merger issues
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Filed Under: 50% DA Merger, 7th Central Pay Commission, 7th CPC Empowered Committee, Increment

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Comments

  1. P. VIJAYMOHAN says

    April 27, 2016 at 4:37 pm

    I am Railway employee in PB2 having Basic pay 25940 including GP 4800 and may basic as on 1.7.16 will be 26720. I am going to retire on 31.07.2016. My pension after commutation will be 8016 plus 125% DA on 13,360 totalling Rs. 24,716/. After implementation of 7 CPC my pay will be 68000 as on 1.1.16 and Rs.70040 as on 1.7.16. My pension after commutation will be Rs. 21012 without any DA., a loss of Rs. 3704. Please explain.

    Reply
  2. R.Thandavakrishnan says

    April 26, 2016 at 9:53 pm

    What will be the remedial action to be taken by the Empowered committee on the report of Mr.Dorai?The 7 th cpc had done a big blunder without recommending merger of 50% DA with pay ,when it exceeds 50%.The unions and Associations convene GB meeting and take suitable action in this regardwith one voice..

    Reply

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