GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

E(P&A)II-2012/DC/JCM/1

New Delhi, Dated 17.10.2016

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110055

Sub: Merger of Dearness Allowance with the Basci Pay w.e.f. 01.04.2004 – computation of emoluments of Running Staff for granting retirement benefits – reg.

Ref: NFIR’s letter No.IV/RSAC/Conf./Part VII dated 05.09.2016

I am directed to refer to your letter dated 05.09.2016 wherein the Federation has mentioned that Northern Railway has vide letter 720/EW/Misc/Union-Items/2015/E.IV/Loose dated 16.11.2015 correctly computed the emoluments of Running Staff with reference to Dearness Allowance and 30% thereon for the purpose of allowing the retirement benefits to those Running Staff who had retired during the period 01.04.2004 and 31.12.2005.

The matter has been examined in Baord’s office and its observed that the methodology for computation contained in Northern Railway’s letter referred to above, is not in conformity with the instructions on the matter as laid down in Baord’s letter No.E(P&A)II-2004/RS-13 dated 12.10.2004, Northern Railway has accordingly been advised to take immediate corrective action in the matter vide Board’s letter No.E(P&A)II-2014/RS-24 dated 22.07.2016.

Yours faithfully,
sd/-
For Secretary/Railway Board

Source: NFIR

Similar Posts:

• Railway Board referred Running, Additional and Breakdown allowances to 7th Pay Commission for consideration…
• Merger of Dearness Allowance equal to 50% of basic pay from April 2004 for Running Staff – Railway Board
• Benefits duly reckoning 55% to 7th CPC Pay Matrix to Running Staff – NFIR
• 30% addition to 7th CPC pay matrix for retirement benefits for Loco Inspectors
• Fitment Factor for Pay Fixation of Running Staff in the 7th CPC Pay Matrix shall be 3 instead of 2.57 – NFIR

DA MERGER WOULD HAVE BEEN MORE BENEFICIAL THAN PAY COMMISSION – G. SAHARAJAN, SECRETARY, CGPA, KERALA

The 7th CPC submitted its report in November 2015. The Empowered Committee of Secretaries blocked it for 7 long months. Finally the cabinet approved the report without any modification, The Gazette Notification on the pay and allowances of employees was issued on 25-07-2016. The same minimum pay of Rs.18000/- The same multiplication factor of 2.57. Absolutely no change.

Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5th and 6th CPC Recommendations.

Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016.

Now we shall workout the financial implication of the 50% DA/DR merger notionally. A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout.

For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”. The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee. Even if we accept the 14.29% increase recommended by the 7th CPC, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the CPC and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: http://cgpakerala.blogspot.in/

Similar Posts:

• Multiplication Factor – A Crucial Indicator for determining the Basic Pay of 7th Pay Commission
• Did you know how the 6th CPC’s Multiplication Factor of 1.86 was derived?
• 7th CPC – Minimum Pension of Rs.9000 for Central Government Pensioner
• Multiplication Factor / Fitment Formula recommended by 7th Pay Commission
• Loco running staff as on April 2017 is 87196

Member of the Seventh Central Pay Commission Rathin Roy has suggested that to meet its fiscal deficit target the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year and defer implementing any real increases in pay and pensions. This, the member has said, could be done by compensating those who would have to bear the burden of the deferred effect by giving them a “more generous award distributed over several years”.

“I am saying that the increment need not all be given at one go… It can be staggered and made more generous… So this could be done for pay and for pension,” Dr. Roy told The Hindu in an exclusive interview. “Now I am not competent to say whether this is politically feasible or not,” he, however, added.

Read more at: The HinduSimilar Posts:

• 7th Pay Commission: Abolish overtime for Govt. staff, pay panel recommends
• Seventh Pay Commission likely to propose highest pay hike since 1947
• 7th Pay Commission to submit report next month
• 7th Pay Commission: Central Govt employees to get higher pay scales than proposed earlier
• 7th Pay Commission recommendations cleared by government

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/

Similar Posts:

• Seeking Merger of DA and Oppose reduce the Retirement age – DPCC
• Merge DA with Basic this year and Defer Increments: Pay Panel Member
• BRMS demands to merge 50% DA and Grant Rs.7000 as Interim Relief
• 7th pay commission worst pay hike in country’s history, says Congress
• Central Govt likely to approve 7% DA to all Central Staff

The letter is translated to English and given below for your kind consideration…

Shiv Gopal Mishra
Secretary

Ph: 2338226
National Council (Staff side)
Joint Cumulative Machinery
For Central Government Employees
13-C Feroz Shah Road, New Delhi – 110001
Email: nc.jcm.np@gmail.com

Letter No: NJC/2015

Date: 27.4.2015

Respected Prime Minister,
Government of India,
New Delhi

Sub: Reg. the grievances of Central Government Employees

Sir,
For the past few years, a solution hasn’t been found to the problems faced by the Central Government Employees. The National council JCM formed for the grievances of Central Government Employees has been totally disabled and the NC JCM meeting has not been held for the past five years.

The Pending demands of the Central Government, which include the merge of Dearness Allowance with Basic Pay, the enforcement of Old Pension Scheme in the place of New Pension Scheme, Interim Relief, Filling up of Vacancies, Increasing the bonus range, Promotion Opportunities, etc didn’t yield to a decision, hence the Railway, Defence (Civil Employees), Postal, other Central Government Sectors are forced to give a presentation in the Parliament under NC J.C.M. on 28th April 2015.

We Central Government Employees whether in Railways, Defence, Postal Department or other Central Government Sectors, are working with complete devotion towards service to the society and progress to the country. Being an integral part of your administration, we hope that you would provide us an opportunity to meet you as well as extend your help to solve our problems.

Yours Faithfully,

(Shiv Gopal Mishra)
Coordinator and Secretary
Employee Division
N.C. J.C.M.

Click to view the original letter in Hindi

Source: NC JCM Staff Side Website

Courtesy: http://7thpaycommissionnews.in/Similar Posts:

• DA Merger and Interim Relief – Major demands to be discussed in NC JCM tomorrow’s meeting
• Bonus Ceiling : Revision of eligibility and calculation ceilings are expected after Bihar Elections
• Memorandum of Interim Relief and Merger of Dearness Allowance – Confederation writes to NC JCM Staff Side Secretary
• DA Merger & Interim Relief – Cabinet Secretary assured for appropriate action
• Pending issues of Central Government Employees – NC JCM Staff Side