LETTER TO HON 'BLE MINISTER OF FINANCE

CGPA/KL/GL/2016    dated     01-08-2016

To

Shri. Arun Jaitely

Hon’ble Minister of Finance, North Block, New Delhi

Respected Sir,

          The purport and intent of this letter is to invite your kind attention to a perennial injustice being meted out to the employees and pensioners in computing DA / DR by ignoring the fraction element in 12 monthly average of cost of Index. A cursory look at this practice will convince you that employees and pensioners are denied a legitimate claim by way of neutralization of cost of living index fully. Considerable pecuniary loss is being sustained by them by following an irrational practice of computation of DA / DR ignoring the fraction element. This loss is significantly compounded whenever base year for calculation of DA / DR is changed consequent on revision of pay by merging DA with pay. This patent injustice is evidenced in the illustration given below:

Consumer Price Index

Month	Base Year 2001=100	12 monthly average	Increase over 115.76 (Old DA)	Increase over 261.42 (New DA)
June 2016	277	269.00	132.38	2.90

DA/DR Calculation with effect from 01-07-2016

	OLD (Rs.)	NEW (Rs.)	DA Computed without ignoring fraction	Loss in DA
Basic	10000	25700
DA	700	514	746	232

    A well laid principle of preventing erosion of real wages on account of rise in cost of living index is mutilated by pursuing the extant practice. It is respectfully submitted that in the computation of I.D.A., which is quarterly, the fraction element of average index is taken into account which may be adopted in C.D.A. case also. How this irrationality of ignoring the fraction element of average index has crept in the determination of C.D.A. is not easily understandable. Any way it can be affirmed without fear of contradiction that this extant practice deserves to be done away with. This Association earnestly requests you to kindly issue necessary orders putting an end to the unjust practice which cause loss in real wages / pension. Appealing for your benign indulgence in this matter.

Thanking you,                                                                                                         yours faithfully

                                                                                                     T.I. Sudhakaran, General Secretary

Copy to: 1. Shri. Shiv Gopal Mishra, Secretary, Staff Side, JCM, New Delhi

               2. Shri. K.K.N.Kutty, Secretary General, NCCPA, New Delhi

RESOLUTION - 7th CPC

RESOLUTION - 7th CPC

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Implementation of Government's decision on the recommendation of the Seventh Central Pay Commission - Revision of provisions regulating pension/gratuity/ commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc.

Implementation of Government's decision on the recommendation of the Seventh Central Pay Commission - Revision of provisions regulating pension/gratuity/ commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc.

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Implementation of Government's decisions on the recommendations of the Seventh Central Pay Commission - Revision of pension of pre-2016 pensioners/family pensioners etc.

Implementation of Government's decisions on the recommendations of the Seventh Central Pay Commission - Revision of pension of pre-2016 pensioners/family pensioners etc.

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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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