DA MERGER WOULD HAVE BEEN MORE BENEFICIAL THAN PAY COMMISSION

-          G. SAHARAJAN, SECRETARY, CGPA, KERALA

        The 7^th 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 5^th and 6^th 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 7^th 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.  

7th CPC - REVISED PAY RULES - GOVT. ORDERS

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7^th CPC – CABINET DECISION – ORDERS ISSUED

GAZETTE NOTIFICATION RELEASED BY THE GOVERNMENT ON 25.07.2016 ON THE 7^TH PAY COMMISSION RECOMMENDATIONS

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NJCA UNANIMOUSLY RESOLVES TO DEFER

THE INDEFINITE STRIKE

After the meeting with the Home Minister today by the NJCA and further developments

leading to issue of a Press Release by the Government of India assuring consideration

of the issues raised by the Staff Side relating to the pay scales and other 

recommendations of the Pay Commission by a High Level Committee, the NJCA has

decided to defer the Indefinite Strike in the background of meetings with the

Ministers and the assurance by the Government of India.

The Press Release by the Government today is reproduced below: 

Press Information Bureau 

Government of India

Ministry of Finance

06-July-2016 20:50 IST

Government assures Representatives of Unions representing employees of the Central
Government that the issues raised by them relating to the pay scales and other recommendations
of the 7th Pay Commission would be considered by a High Level Committee.

Representatives of Unions representing employees of the Central Government had
met the Home Minister Shri Rajnath Singh, the Finance Minister Shri Arun Jaitley
and the Minister for Railways Sh. Suresh Prabhu in the evening of 30th June, 2016. 

They had requested that certain issues raised by them in relation to the pay scales
and other recommendations of the Pay Commission be allowed to be raised before
a Committee of Secretaries looking into different aspects of grievances of 
employees in relation to the Pay Commission recommendations. 

STRIKE IS DEFERRED, BUT THE STRUGGLE SHALL CONTINUE

Finally, the united struggle of 33 lakhs Central Government Employees under the banner of National Joint Council of Action (NJCA) comprising Railways, Defence and Confederation has compelled the totally negative and unwilling NDA Government to negotiate with the staff side leaders. Hon’ble Prime Minister has intervened and directed three Cabinet Minsters viz. Home Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitly and Railway Minister Shri Suresh Prabhu to hold discussion with the NJCA Leaders on 30^th June 2016. After discussing the demands raised in the Charter of demands, the Ministers assured that a high level committee will be constituted to consider the demands raised by NJCA especially the demand for improving the minimum wage and fitment formula.

As no written communication or minutes regarding the assurances given by Group of Ministers is forthcoming, the NJCA met again and 6^th July and decided to go ahead with the strike decision. Again Home Minister Shri Rajnath Singh called the NJCA leaders for discussion on 6^thJuly and reiterated the assurances already given on 30^th June and stated that the Finance Minister will issue a press statement on 6^th July itself confirming the assurances given by the Group of Ministers. It was further assured by the Minister that the proposed High level committee will submit its recommendations to Government within a time frame.

Accordingly, the Government issued the press statement and after detailed deliberations the NJCA unanimously decided to defer the indefinite strike till the committee finalizes its report. The press statement of the NJCA and the Government are attached.

Revision of Pension of BSNL Pensioners Removing Anomalies Cabinet Approves

Revision of Pension of BSNL Pensioners Removing Anomalies Cabinet Approves

Press Information Bureau 

Government of India

Cabinet

05-July-2016 17:20 IST

Cabinet approves Revision of pension of BSNL Pensioners Removing Anomalies 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the revision of pension of BSNL pensioners and family pensioners, who retired prior to 10.06.2013 by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment, and (ii) Modifying the liability of BSNL towards the payment of pensionary benefits to the retired employees. 

The pension of BSNL pensioners/family pensioners, who retired prior to 10.06.2013 has been revised w.e.f. 01.01.2007 notionally with actual benefit w.e.f. 10.06.2013, by allowing the benefit of merger of 50% DA/DR with Basic Pay/ Pension, effectively amounting to 78.2% DA/DR for the purpose of fitment at par with the serving employees of BSNL. However, increase in the amount of DCRG, leave encashment and commutation of pension in respect of these pensioners shall not be increased on this account. 

The pension liability in respect of employees of Department of Telecommunications (DOT) / Department of Telecom Services (DTS) / Department of Telecom Operations (DTO) who retired prior to 01.10.2000 is solely borne by Government of India and the BSNL will have no liability in respect of these employees. In respect of employees who are absorbed in BSNL, the liability on account of pensionary benefits shall be fully borne by Government while BSNL will continue to discharge pension liability by way of pension contribution in accordance with FR-116 for the period they so work/worked. 

The revision entails an estimated recurring annual expenditure of approximately Rs 129.63 crore for pensioners and Rs 24.93 crore for family pensioners and arrears from 2013-14 would be Rs 239.92 crore approximately for pensioners and Rs 44.62 Crore approximately for family pensioners. Approximately118500 pensioners all over India will be benefitted by this revision. 

This revision will fulfill the long pending demand of revision of pension of BSNL absorbed employees who retired prior to 10.06.2013 and will bring the pensioners at par with the serving employees of BSNL by removing the anomalies. It will help in reducing the financial burden of BSNL and removing prospects of industrial unrest in BSNL while fulfilling the commitment of Government. 

Background: 

The decision of the Cabinet has come in the wake of an anomalous situation created in the difference of pension formula among the BSNL retirees who retired before and after 10.06.2013. Further, the decision regarding pensionary liability is on persistent demand from various quarters and a series of deliberations at different levels to fulfill the assurance given by the Government before corporatization i.e. before formation of BSNL. 

Source:-PIB