Thursday, 20 February 2014

UPA Government's gift for Central Government employees, 50 % merger of DA with basic pay approved by Cabinet

As predicted by me, the Cabinet today approved the merging of 50 percent Dearness Allowance with Basic for all Central Government employees.  The merger of 50% DA with basic has been included in the Terms of Reference for the 7th Pay Commission Panel lead by Retired SC Judge Ashok Kumar Mathur.

UPA Government's gift for Central Government employees, 50 % merger of DA with basic pay approved by Cabinet

Though the reports are sketchy at this moment in absence of any concrete order or communique from the Government in this regard, the minutes of Cabinet Committee which approved the same is given below :
In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Cabinet also approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. 

The order for merger of 50 percent Dearness Allowance with Basic Pay will now be recommended by the 7th CPC Panel chaired by Justice Mathur.  After which the Government/Finance Ministry will issue specific orders regarding the same.  It is hoped that the 7th CPC will issue orders regarding the merger in the month of April 2014.  

The Cabinet is also likely to approve the hiking of DA from January 2014 by 10%.  The net effect of this hike will result in 100% Dearness Allowance with effect from Jan 2014 till the date of issue of 50% DA merger orders.  From the date of merger(which can be retrospective) the 7th CPC will issue new Dearness Rates.  Both the orders are expected to be issued simultaneously. 

Sadly the issue of raising of the retirement age in respect of Central Government employees to 62 years was not considered.


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40 comments

  1. Mr Vijay is there no chance for retirement age 62?? There was news that this issue was almost confirmed.

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  2. RAJU FROM BHOPAL BUN-NECESSARY RAISED THIS ISSUE .THE RETIREMENT AGE 60 YEAR IN ALL RESPECT FOR CENTER &STATE GOVERNMENT EMPLOY IS OK.

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  3. Raising of retirement age to 62 is a retrograde step given the present unemployment and several posts lying vacant for years together. The govt must examine the pros and cons of this step before taking a final decision. If need be, an opinion poll may be conducted

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  4. Sir,
    It is now learnt that cabinet has not yet approved the merger of DA, and will be considered only after Finance Minister returns from abroad. Pl confirm.
    Thanks
    Natarajan

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  5. Sir, I feel the report of cabinet approving ToR on 20th Feb was wrong. Cabinet will decide about this only on next weekend after FM returns from Australia.

    ReplyDelete
  6. Ramaswamy Natarajan and Crystalclear, the news of cabinet approving the inclusion of merger in the ToR of 7th CPC is absolutely true. Look at this way, by doing so the UPA II doesnt have to heed the Model Code as CPC has now been made a constitutional body outside the purview of the Government to rationalise the payscales of Govt Employees :)

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  7. Sir, then how do you say that retirement age 62 is not being considered by Government when so many sites are abuzz with news of it getting approved in next cabinet meeting.
    Some links below for your reference
    http://www.gconnect.in/news/merger-of-da-with-pay-and-interim-relief.html
    http://www.updatesindia.in/2014/02/Retirement-age-62-Central-Government-Employee.html

    ReplyDelete
    Replies
    1. Crystalclear Sir, only two items were approved by cabinet that day :
      1. 50 % merger inclusion in ToR
      2. Some item from sachar committee recommendation
      You can read that here > http://www.thehindubusinessline.in/2004/02/21/stories/2004022102390300.htm

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    2. Yes Vijay Sir, you're absolutely right , only DA merger was included in ToR that day but it would be too early to rule out the possibility of hike in the retirement age as media reports and info from sources regarding this matter have been very positive. Almost all major central govt news portals n websites have been abuzz with this news (as also cited above by crystalclear sir) ... all this is not without a concrete reason . :-)

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  8. Anonymous sir, may be retirement age 62 may already have been part of ToR...In any case even if Government doesn't include it as part of ToR of 7th pay commission, it can still declare it as an independent decision after cabinet clearance before Feb 28..Am I right Vijay Sir?

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    Replies
    1. Yes Crystalclear theoretically you are correct and hopefully the answers will come before 28th Feb. The question remains is that why didnt the cabinet take up the matter along with the 50 % DA one on 20th

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    2. dear vijay ,

      There is no chance to increase the retirement age before 28th feb. it will not benefit feb retirees.only 5 days left

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    3. govt do not want to given benefit to february retirese

      Delete
    4. govt do not want to give benefit to february retirese

      Delete
  9. sir, what is the effect date of 50% da merger with BP

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  10. But any body clear .... what is formula or method ... how much hike in the Basic ? and the OROP that also going to implement from 1 April ( ?) ... is both the order will carried out in time ( I am spk about the Clerical side ) and when we get the benefit ... please reply

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  11. chal bag jaa free ka paisa chahiye tere ko ha ha ha

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  12. Cabinet approved retirement age to 62 or not ?

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  13. da merge or not

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  14. Are da merge hoga kya

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  15. orders of mergers of 50% seems to uncertain only the UPA government can do it we cannot any other coming goverment

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  16. we have lot of aspectation with the government , only the ruling party can do it ,which will be effect a lot in coming election , we hope for the favourable decision

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  17. abhi nahi to ek saal (year) tak koi chance nahi

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  18. Government should implement the raise in the age of retirement with immediately. This will be a excellent gratitude to the employees who have worked hard through out their life and not dishearten them as they are not eligible for 7th pay commission pay scale. or forget their votes, as they are very very angry with the Congress government behavior.

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  19. We request Government to increase retirement age as soon as possible. You have unnecessarily created a hope among us, if you dont increase the retirement age, you would loose faith under the eyes of every govt employee. Even my friends are telling the same, now no one wants to vote for UPA. Atleast BJP or aam aadmi party should consider this.

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  20. Make retiring age 62 possible according to 7th central pay commission it should be done.
    As per now a days human life expectancy is more. they are capable of doing hard work. It will be a good discussion if retirement age increases.it will help for lakhs of government employees.
    DA merger is not a big issue but retiring age is big issue.
    Rumours all around made all central government employees so eager to listen hike in retiring age.

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  21. Retirement age 62 could be easily implemented. Upa is just being stubborn by not doing it. With increasing life expectancy and better heathcare facilities across the nation, central govt staff can easily serve uptil 62... upa is being plain stubborn n turned a deaf year to this demand which is not right.... every central govt servant is now going to vote for bjp as they had at least taken the initiative of raising it to 60 in 1998 under leadership of Shri Atal Bihari Vajpayee...hope Shri Narendra Modi considers it to at least 62 immidiately after being voted to power in 2014 LS ELECTIONS !!!

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  22. Now Congress has made a BIG BLUNDER by not raising retirement age to 62 years, after much hyped publicity. Congress can play games with everybody but you can hurt sentiments of a Central government employee, who has a votebank of over 2 crores including their family members. Now it is on grounds of an unrecoverable crises atleast for another 15 years! RIP Congress!

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  23. Rahul ji,

    You think you are intelligent. but you are not. Please grow up, atleast make a single bold decision like increasing retirement age to 62 if you want to come to power. Already people know your a failure through your 'First Television Interview'!

    ReplyDelete
  24. Boo Mr Silent Manmohan Singh...a man NOT of his word....now election schedule would be announced tomorrow....and forget about retirement age increment. UPA has unnecessarily planted a seed in an employee's mind.

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  25. UPA has played with the emotions of every central government employee.

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  26. The congress party will face the conequences in the coning elections and in future too for hurting the sentiments f so many people.

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  27. have a any chance to increase age 62 after election

    ReplyDelete
    Replies
    1. AGAR ABI NAI KIYA DA MERGE TO FIR BJP TO KAREGI NAI

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    2. KAB HOGA DA MERGER?????? WHEN ELECTION WILL BE OVER AND IF OTHER GOVT. COME THEN VIJAY SIR WILL IT GIVE US SAME WHICH CONGRESS WOULD HAVE GIVEN

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    3. NO BRO, GOVT. IS NOT MERGING DA OR IS IT DOING SO

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    4. WE REQUEST GOVT. PLZZZZZZZZ MERGE DA WITH BASIC AS SOON AS POSSIBLE

      Delete
  28. Retirement age 62 for central government employees may be announced in the budget. PM Shri Modi and Finance Minister Shri Arun Jaitley have taken a decision in this regard. Source of the news requests to be undisclosed.

    ReplyDelete

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