DA Merger is more Beneficial than 7th CPC Implementation

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.

DA Merger is more Beneficial than 7th Pay Commission

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”.

Multiplication factor would have increased to 3 instead of 2.57

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/

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3 thoughts on “DA Merger is more Beneficial than 7th CPC Implementation”

  1. Very gud and eye opener calculation. I think this should reach to the honourable FM and PM also.

  2. The 7CPC outcome is quite pitiable and deplorable. I agree with the view that by not merging 50 percent of DA/DR from the due date, the employees and pensioners have been put to heavy loss. We had some hope in the Empowered Committee that they would enhance the minimum pay matrix atleast to Rs 21000 and the fitment factor to 3. They sat on the report for 7 months and finally passed on the buck to various committees for further examination! It is common knowledge that whenever the Govt intent to deny or delay justice the usual practice is to constitute committees. The various Associations also seems to have been taken for a ride and fallen into the sweet promises by the Ministers! What a pity! In this context, the article written by Sri Vinod Rai, former C&AG, in the Week dated July 24, 2016 makes an interesting reading!

  3. The person who are serving and take pension under centre government (BJP) now take decision for next time in future don’t gave votes to BJP.

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