DA Merger with Basic Pay – Ministry of Finance replies in the negative
DA Merger with Basic Pay – Ministry of Finance replies NC, JCM in the negative for Merger of Dearness Allowance with Basic Pay
With regard to representation of National Council (Staff Side), JCM for merger of Dearness Allowance with Basic Pay, Department of Expenditure, Ministry of Finance has replied that Sixth Central Pay Commission did not recommend merger of DA with basic pay at any stage and that the same was accepted by Government.
Shri Shiva Gopal Mishra,
National Council (Staff Side),
Joint Consultative Machinery for Central Government Employees,
13-C, Ferozshah Road,
New delhi-110 001
Subject : Merger of Dearness Allowance with Basic Pay – regarding
Text of Letter dated 12.06.2014 of NC JCM addressed to Government
Shiva Gopal Mishra
The Cabinet Secretary
Chairman National CounciI(JCM),
Government of India, North Block, New Delhi
Sub: Merger of DA with Pay and sanction of Interim Relief for the Central Government Employees.
It may be recalled that the two issues, viz. Merger of Dearness Allowance with Pay and Interim Relief have been the subject matter with the government at the time when the Staff Side was called upon to present their views while finalizing the ToR of the VII CPC by the Secretary(PersonneI, DoP&T), in his capacity as Chairman, Standing Committee, National CounciI(JCM). Although, the Staff Side pleaded for the specific reference of the above two issues to the VII CPC, the final version of the ToR, as approved by the government, did not find place for our views.
It would not be out of context to mention here that the methodology adopted for compensating the erosion in the real value of wage on account of price hike reflected in the rate of Dearness Allowance paid to Government Employees. The merger of DA to partially compensate the erosion in the real wages was done in pursuance of the report of Gadgil Committee in the post 2“ Pay Commission. This has, thereafter, been continued in the successive Central Pay Commissions also, wherein up to 50% of DA has been merged with the Pay when Dearness compensation exceeded 50%.