Formation of seventh pay commission and merger of DA

According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission.

The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it's recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation. Most significantly, in the eve of general election, the Govt. may spread a "feel good" situation among the employees without having to pay an extra penny from the exchequer. In the other hand merging D.A. with basic pay will lead to a considerable expense and as there is definite negative recommendation of sixth CPC in this respect, Govt. can easily deny this demand. After formation of seventh CPC, if the ruling party fails to come back in the corridors of power, the entire liability will have to be borne by the new Govt. So, it's a win win situation of the ruling party and most likely, it will be announced in the later half of the year.

Source : http://paycommissionupdate.blogspot.in/

Delay in declaration of Dearness Allowance

According to the PIB release dated 13-4-2013, The Union Finance Minister Shri P. Chidambaram left for one week tour to Canada and USA on Sunday,14th April, 2013. The Finance Minister will leave for the back home on 20th April, 2013 and will arrive in the national capital on the early morning of 22nd April, 2013.

Now it can be claimed that the decision on Dearness Allowance will be declared only after the Finance Minister’s arrival. So the central government employees may have to wait for one more week to get the result on 8% hike in dearness allowance from January 2013.Let us hope this will be the reason for the delay!

 

 

 

Enhancement of DA rate w.e.f 01.01.2013

 

A proposed hike of 8% in the dearness allowance of government employees is likely to come up before the Cabinet Committee on Economic Affairs on Tuesday but a decision could be deferred with finance minister P Chidambaram out on a tour to Japan.

The move to increase DA to 80% from 72% is likely to benefit around 50 lakh employees and 30 lakh pensioners of the central government. The government had raised DA to 72% in September last year, which had come into effect from July 1, 2012. According to the current proposal, the increase would be effective from January 1, 2013 and employees and pensioners would be entitled for arrears.

Source:-The Times of India