At present DA is getting ready to touch 80% level. We can expect that it will reach to 100% level near future.
Dearness Allowance Vs Price Rise
The central government employee’s confederation opined that The Dearness allowance which the cg employees are receiving now is not enough to meet the price rise of essential commodities. (see here)
The retail price of those commodities which go into making of minimum wage have risen by about 160% between 1.1.2006 to 2011 in comparison to D.A. compensation, which on the date had been just 51%
The effect of 50% Dearness allowance on our Pay
The sixth pay commission recommended that Whenever the DA reaches 50% level , Some allowances have to be increased by 25 % . Where as in Fifth CPC , it had been recommended when the DA reaches 50 % it should be merged with Basic Pay. It has been implemented with effect from 2004. And the fifth cpc also recommended that the Pay and Allowance should be revised after every five years. But it was not accepted by the Government.
The objectives of increasing Allowances by 25% as per the 6 CPC or merging DA with Basic pay as in the case of 5CPC, when ever DA reaches 50%, is to make the central government employees to balance the financial burden caused by Price Rise through increasing their pay package.
The impact of DA Reaches 100%
According to fifth CPC the 50 % DA had been merged with Basic Pay and in 6CPC , some allowances have been increased by 25%. But 5CPC didn’t say anything about what should be done when DA touch 100% level. Because the govt servants receiving their pay as per pre revised pay were not granted merging of another 50% of DA in 5CPC scale.
7th Pay commission
Even after the rate of DA is increased to 50% level it is not enough to increase some allowance by 25% as it will not help to handle the expenses caused by inflation. So The central government employees are expecting that government should constitute 7th pay commission immediately.
AM Manohar says
The government will be adamant in setting up the 7th PC quoting the earlier recommendations. As far as merging of the DA is concerned it is the failure of the negotiators as the Left parties were with the UPA when the 6th PC was introduced by the government. As on day no opposition party is speaking on this subject, hence we can conclude that the next PC will come on the day the government wishes.
Visweswar Y A says
The first and formost thing is to control over prices of essential commodities in the interest of the common people. This has to done by the Central Govt. As every one knows that the pensioners does not getting any allowence, the 50% DA should be merged with basic then the pensioners can get some relief. As soon as possible the Govt sholuld constitute 7th CPC.
AM Manohar says
As the pensioners don’t get any allowances which will raise with the DA increase, at least the merger of DA with basic must be done for them on reasonable terms. Will somebody take up this matter?
Lakhi Ram Das says
After the revision of pay on reaching 100% DA there should not be any hike in pay/salaries of the employees but the government should have strict periodical checks/ control over prices of essential commodities in the interest of the common people and the poorest of the poor. Unless the prices are controlled it is of no use of raising the salaries.
Lakhi Ram Das says
to constitue a new pay commission to recommend the government for rvision of pay structure with immediate effect to the maximum benefit of the employees and pensioners . thanks