GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.EP&A)-II/2006/RS-28

New Delhi, dated – 22.11.2016.

The General Secretary,
National Federation of Indian Railwaymen,
3, Chelmsford Road,
New Delhi – 110 055.

Sub:- Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 – Reckoning as pay for running staff.
Ref:- (i) DC/JCM Item No. 15/2009. (ii) GS/NFIR’s letter no. IV/RSAC/Conf/Vol. VI dated 28/03/2016.

Please refer to your letter dated 28.03.2016 under reference no. (ii) on the subject noted above. In this connection, it is mentioned that Board’s letter dated 21.10.2014 addressed to both the Federations highlighted that the basis for the exclusions was the Ministry of Finance’s OM dated 01.03.2004 on the merger of 50% DA with Basic Pay that was adopted by the Ministry of Railways. Vide letter dt. 28.03.2016, however, NFIR has not agreed with the reply and has reiterated that the exclusions violate the IREM provision of Running Allowance and that the OM dt. 01.03.2004 of MoF is not relevant in this connection.

For a better understanding of the logic on which the three exclusions have been made the table given below may kindly be seen:-

As brought out in the table above, there has been no violation of the Rules. It is therefore requested that the item may be closed.

sd/-
For Secretary/Railway Board.

Source: NFIR

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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

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Order for Merger of 50% DA, Retirement age news.

Recently rumour mill went overdrive in social media with the following news that

1. Central Government decided to merge 50% DA with basic pay with effect from 1.1.2015.

2. It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier.

The 7th CPC is expected to submit its report shortly and due to Bihar elections the Central Government cannot take any policy decisions in this regard. Hence it is clarified that none of the above news are correct.

Source: http://karnatakacoc.blogspot.in/

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New Delhi : With the amount of dearness allowance payable to the central government employees going up to 119 percent of their basic pay, the Congress has said that the time has to come merge the two.

“If the government of the day denies this demand of the employees, then it would be a big injustice to them,” said Congress spokesperson and former union minister Ajay Maken who also represented a Lok Sabha constituency in the past that has a strong section of these employees as voters.

He said that a pay commission normally orders a 40 percent hike in the basic pay.

“Currently the situation is that for a basic pay of Rs.100, the DA is Rs.119. Now if the pay revision is 40 percent the employees shall gain Rs 40 only, but if the basic pay and DA are merged then the gain would be 40 percent of Rs.219- i.e.Rs.84,”he added.

Maken said that a committee appointed by the government had recommended that once the DA crosses 100 percent of the basic pay, then the two should be merged.

The Congress leader also demanded that in view of the high rate of call drops the private telecom operators should be directed to provide an across the board rebate to all customers in the monthly bill.

“The normal call drop rate is 2 percent, but now the papers circulated by the Telecom Regulatory Authority of India (TRAI) show that it is as high as 17 percent, so the mobile users must be compensated,” he demanded.

He charged that the government was protecting the private telecom companies in spite of the poor quality of service. : The investments in infrastructure that should be made by these companies are not forthcoming and the quality of service is deteriorating,” he added.

Source: http://www.freepressjournal.in/

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Maken to sit on dharna

Delhi Pradesh Congress Committee president Ajay Maken along with a large number of party workers will sit on a daylong dharna tomorrow at Jantar Mantar seeking merger of Dearness Allowance (DA) with basic pay and also to oppose the move by the BJP-led Central Government to lower the retirement age of government employees.

DPCC chief spokesperson Sharmistha Mukherjee said party workers, government employees, teachers, pensioners and others will join Maken in the dharna to press their demand for merger of DA with basic pay and also to oppose the move to lower the retirement age of government employees.

Addressing a press conference, Mukherjee said the Congress would be seeking the merger of 100 per cent DA with basic pay, which is 113 per cent as on January 1, 2015. The Congress-led UPA II government was to take a decision on merger of DA with basic pay, but due to the announcement of the general elections, it had to be deferred.

Read more at The Tribune

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