Friday 28 February 2014

10 percent Dearness Allowance hiked for Government Employees from 1.1.2014 (January 2014) but no clear verdict about the 50 % Merger

The UPA II's perhaps second last Cabinet meet gave the Government Employees a lot to cheer.  Not only did the Cabinet approve the 10 percent hike in Dearness Allowances for Government Employees but it also gave its approval for the Terms of Reference for the 7th Pay Commission.

10 percent DA hiked for Central Government Employees from 1.1.2014 (Jan 2014) payable after 31.3.2014
The Dearness Allowance will now reach 100 percent of the Basic Pay + Grade Pay for all central government employees.  The Presser released by Press Information Bureau is given below :

10 percent DA hiked for Central Government Employees from 1.1.2014 (Jan 2014) payable after 31.3.2014
The wordings in the third line of the press release infer that the Government employees wont require a separate order for increase of DA and the Government organisations can draw the arrears as well as salary from 1.1.2014 after 31.3.2014.   However Finance Ministry is expected to issue a formal order regarding the same.  
in cash, but not before the disbursement of the salary for the month of March 2014
While there is mixed news of 50 percent merger with Basic Pay. Some websites and eminent personalities have given contrarian views , I hold firm belief that this has been approved and made a part of the Terms of Reference of the VIIth CPC.  The ToR is briefly given below :

 7th Central Pay Commission

 The Union Cabinet today gave its approval to the Terms of Reference of 7th Central Pay Commission (CPC) as follows:-

a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i.  Central Government employees-industrial and non-industrial;
ii. Personnel belonging to the All India Services;
iii.Personnel of the Union Territories;
iv.Officers  and   employees   of  the   Indian  Audit  and   Accounts Department;
v.Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and
vi.Officers and employees of the Supreme Court.

b) To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c) To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d) To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e) To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f) To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g) To make recommendations on the above, keeping in view:
i.  the economic conditions in the country  and need for fiscal prudence;
ii. the need to ensure that adequate resources are available for developmental expenditures and welfare measures;
iii. the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;
iv.the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
v. the best global practices and their adaptability and relevance in Indian conditions.

h) To recommend the date of effect of its recommendations on all the above.
The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission.

My belief stems from the following line of the Terms of Reference
It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.
The emphasis of this line is that the 7th CPC may recommend any interim payment to the Central Government employees as it deems necessary.  This also means that all further orders regarding the pay and allowances will be issued by the 7th CPC.  This way the UPA would have circumvented the Model Code of Conduct for polls as the merger will now not be a policy decision but a decision made by a parliament/cabinet approved body.

However this is open to interpretations.  Today many news channels are also giving opposite view and the PIB/Government website dont reveal much so it is now left open to interpretations.

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  1. Vijay Sir!! Does this mean Retirement age 62 and DA merger cancelled altogether? or can it be given as interim relief before 2016?

  2. no chance of enhancement of retirement age to 62. UPA has cheated 50 lakh central government employees. I urge all the central government employees and their families to withdraw support from this government who only listens to Rahul Gandhi and no one else...CENTRAL GOVT EMPLOYEES AGAINST RAHUL GANDHI. RAHUL GANDHI MURDABAAD. DEFEAT AND SHAME FOR RAHUL GANDHI IN THE LOK SABHA ELECTIONS 2014 !!!

  3. This congress party and rahul gandhi both of them are simply hopeless,not increasing the retirement age even after commitees recommendation is complete injustice to the efficient and willing govt staffs.and if they give excuse of unemployment,its clear that govt sector can never manage to employ people nor they will do something for betterment of current employees.

  4. They will surely face defeat in the coming elections, they will not even get a face saving result.

  5. Packed with information and it really got me thinking. If the age increase had come maybe congress would have had some saving grace.

  6. Given that elections are still to be announced and it just takes a dopt order to enhance the retirement age to 62... UPA 2 SHOULD DO IT IF IT DOESN'T WANT TO PISS OFF ALL THE CGEs and their families....dont make central govt staff go against you, UPA.... DON'T DO IT BECAUSE OF THAT STUPID RAHUL GANDHI WHO HAS NO POLITICAL CAREER .....

  7. OBC quota granted to JAT community at the last moment and not even a 2 year service extension to govt servants ? Where the fuck is rahul gandhi for youth now ??? Arent central gvt servants even so deserving ? ? ? SHAME ON UPA !!! BLOODY VOTE BANK POLITICS....

  8. Well, for everyone's information here as far as retirement age 62 is concerned... it can still be enhanced while model code of conduct is in force ...

  9. Is that possible?? I dnt thk so , Mr Vijay what is ur take on chances of increasing retirement age??

  10. Hi annon why dnt u explain as how increase in retiremenyt age will b possible even aftr announcement of elections??

  11. Mr vijay kindly comment on the above post on model code iof conduct wl b applicable on rrtirement age

  12. Dear all, while the model code of conduct is in force, upa2 cannot enhance the retirement age to 62 as it would now be seen as a populist measure to swing central govt staff's votes in their favour. Upa2 had made up its mind not to enhance the retirement age well before the vote on account... they were just taking central govt employees for granted and were keeping mum on the media reports deliberately. Upa has always been against raising govt staff's r.age. ashok gehlot even reduced it to 58 from 60 in his term as a chief minister to generate employment but tables were turned on his plan to woo youngsters n the lack of votebank of 7 lakh state employees reduced congress to mere 53 from 153 in state assembly elections.this time its going to happen with CENTRAL GOVT. EMPLOYEES this time with RAHUL GANDHI !

  13. And also don't have any hopes from NDA also... their prime ministerial candidate narendra modi doesnt have very good views on central governments either... read what shocking statement he gave which was published in BS recently



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