DA from July 2016 will be 3% - NC JCM Secretary writes to Finance Secretary

Shiva Gopal Mishra

Secretary

Ph:23382286

National council (Staff Side)

Joint Consulative Machinery for Central Government Employees

13-C, Ferozshah Road, New Delhi-110001

E-Mail : nc.jcm.np@gmail.com

No.NC/JCM/2016

Dated: September 6, 2016

The Secretary(Expenditure),

Ministry of Finance,

(Government of India),

North Block, New Delhi-110 001

Dear Sir,

Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

The revised pay structure, as recommended by the 7th CPC, was given effect as on 01.01.2016 as per the Government’s Notification. The Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being ignored), got merged with Pay as on that date. The 7th CPC has not indicated as to what base figure of AICPI(IW) the Revised Wages will relate to hereafter wards. As you are aware, the actual DA that was due as on 01.01.2016 was 125.75. It is only due to the practice of ignoring fraction; the DA was determined at 125%. No doubt, the said practice had not been impacting very much except for the postponement of the benefit by six months. It is, therefore, necessary that, Revised Wages are related to a base index figure equivalent to actual Dearness Allowance percentage of 125 that stands merged as on 01.01.2016. This is more so due to the fact that there is no possibility of the ignored fraction of 0.75 being reckoned for any computation in future.

We, therefore, request that, 12 monthly average, which stood at 261.33 as on 31.12.2015, may be taken at 260.46, which would provide the exact percentage of DA at 125. The future percentage increase in DA in other words may be computed with the base figure of 260.46. The next instalment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.

Comradely yours,

sd/-

(Shiva Gopal Mishra)

Secretary (staff side)

NC/JCM & Convener

Central Government has a proposal to Pay 1% DA from July 2016 as an interim Measure

The Sources Close to the Ministry of finance informed that there is proposal to Pay 1% DA from July as an interim Measure.It is said that the Central Government has not yet decided about the DA rates in Revised Pay scale.

Sources close to Finance Ministry told that the initial installment of DA to central government employees on the revised pay structure w.e.f 1.7.2016 is under consideration. Mean time there is a proposal to pay the DA from July 2016 at the rate of 1% to all CG Staffs. It will be a shocking news for CG Staff, since they are already expecting 2 to 3% DA from July 2016.

PRU is asked to submit Financial Implication of 1% DA

But the fact is the Department of Expenditure has directed the PRU of the Finance Ministry to furnish the details of additional Financial Implications for 1% increase of DA with effect from 1.7.2016 on the revised Pay Structure.

Further the Pay Research Unit has been requested to furnish financial implications for the Period of July 2016 to February 2017 on account of granting 1% DA from July 2016 to all central government employees including Armed Forces and UT Employees.

According to the above information, it is believed that announcement of 1% DA for July installment may be made any time soon.

Cabinet approves Cadre Review of Group ‘A’ Executive Officers of Border Security Force

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the Cadre Review of Group ‘A’ Executive officers of BSF with net creation of 74 posts of various ranks from Assistant Commandant to Additional DG ranks to enhance the operational and administrative capabilities of BSF.

Increase of existing structure of Group ‘A’ posts from 4109 to 4183 posts are as follows:

1. Increase of one post of Additional DG (HAG level).

2. Net increase of 19 posts of Inspector General (SAG level).

3. Net increase of 370 posts of DIG/Commandant/2 1C (JAG level).

4. Net increase of 14 posts of Assistant Commandant (JTS level).

5. Net reduction of 330 posts of Deputy Commandant (STS level).

Background:

The BSF is the largest border guarding force established in 1965. The present sanctioned strength of the Force is 2,57,025 having 186 Battalions (including 03 NDRF Battalions). Of these the Executive Group ‘A’ cadre has sanctioned strength of 4065 officers (4109 including the IPS quota). About 90% of the troops are deployed in Indo-Pakistan Border, Indo-Bangladesh Border (including North East) and Left Wing Extremism (LWE) States. The last cadre review of the service was done in 1990.

Relaxation to travel by air to visit NER, J&K and A&N on LTC extended

Relaxation extended for two more years, with effect from 26th September 2016.
For journey to Jammu and Kashmir, any airlines (including private operator) may be preferred, subject to LTC 80 fare of Air India.

"The undersigned is directed to refer to this Department's O.M. of even No. dated 26.09.2014 on the subject noted above and to say that relaxation. of CCS (LTC) Rules, 1988, to allow Government servants to travel by air to North East Region (NER), Jammu and Kashmir (J&K) and Andaman & Nicobar Islands (A&N) is extended for a further period of two years w.e.f. 26th September, 2016 subject to the following conditions:
 (a) Travel by air to continue to be performed by Air India in Economy class at LTC-80 fare or less. (b) For journey by air to Jammu & Kashmir, travel by any airline is allowed, however, the journey should be undertaken in Economy class at a fare less than or equal to LTC-80 fare of Air India. 

Read the full O.M. here

Govt. employees step up pressure for early settlement of 7th Pay Commission allowances

Despite the largesse it gave to its 48 lakh employees and 55 lakh pensioners, at an estimated cost of Rs. 1.02 lakh crore with 23.55 per cent hike in pay and allowances, the 7th Pay Commission continues to be a source of an irritant for the Modi government as issues on allowances are not settled.

The Centre had set up a 'Committee on Allowances’ which met last Thursday under the chairmanship of Union Secretary, Finance (Expenditure) with representatives of the Central government unions.

At the very start of the meeting, representatives of the unions expressed their anguish for 'non-formation of High Level Committee’. According to them it was agreed to in July by the Group of Ministers (Government of India) for settling the issue of Minimum Wage and Multiplying Factor. The unions want the 'minimum wage’ for Central employees to be fixed at Rs. 26,000 as opposed to Rs. 18,000 recommended by the 7th Central Pay Commission (CPC).

“The Secretary, Finance (Expenditure) told that, the committee constituted under the chairmanship of Addl. Secretary (Exp.) with J.S. (Pers.), JS (Estt.) and JS(Imp.) as Members has been made only for this purpose. Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance’’, Mr. Mishra, secretary (Staff Side) of the National Council/Joint Consultative Machinery, noted.

At the meeting, the unions made a strong case for implementation of the allowances to be decided by the Committee from January 1, 2016.

Besides, they wanted that House Rent Allowance be fixed at range 10 to 30 per cent of the basic linked to the classification of the town of posting, children education allowance of Rs. 3,000 and hostel subsidy of Rs.10,000. All these allowances should be tax exempt.

Staff Side demanded inclusion of post-graduate and professional courses in children education allowance. The issue of special duty allowance was also raised for Northeastern region.

Their wishlist extended to 'Fixed Medical Allowance’ of Rs. 2,000 with Dearness Allowance Indexation, review of overtime allowance, small family allowance and dress allowance.

“Various Departmental Allowances, which have been abolished, should be allowed to continue, like Breakdown Allowance in the Railways and Fixed Conveyance Allowance to Postal Department employees”, Mr. Mishra noted.

Separately, M. Ragaviah, National Federation of Indian Railwaymen-NFIR (an affiliate of Congress trade union INTUC) said, “While there has been no commitment from the Chairman and Official Side of the Committee, the Finance Secretary however stated that further meetings will be held and in the meantime the JCM (Staff Side) may list out common issues and send the same to the Joint Secretary (Imp) and equally Departmental specified issues be sent through the respective Administrative Ministries for examination”.

Calculation begins for DA wef 01 Jan 2017

Expected DA of 2  % from Jan 2017 

DA Calculation Sheet

Since 7th Pay Commission  (New Formula)
Month	All India Index	% of Increase
Jan-16	269	0.48
Feb-16	267	0.93
Mar-16	268	1.38
Apr-16	271	1.86
May-16	275	2.40
Jun-16	277	2.91
Jul-16	280	3.45
Aug-16	278	3.90
Sep-16	277	4.25
Oct-16	278	4.53
Nov-16	277	4.76
Dec-16	275	4.95

Consumer Price Index for Industrial Workers (CPI-IW)-December, 2016

The All-India CPI-IW for December, 2016 decreased by 2 points and stood 275 (two hundred and seventy five). On 1-month percentage change, it decreased by (-) 0.72 per cent November and December, 2016 when compared with the decease of (-) 0.37 per cent between the same two months a year ago.

Consumer Price Index for Industrial Workers (CPI-IW) – October, 2016

All India Consumer Price Index Numbers for the month of Sep, 2016 released.

The Consumer Price Index for Industrial Workers Base Year 2001=100 for the month of September 2016 has been released by the Labour Bureau today through its official web portal. The index decreased by one point and stands at 277.

The All-India CPI-IW for July, 2016 increased by 3 points and pegged at 280 (two hundred and eighty). On 1-month percentage change, it increased by (+) 1.08 per cent between June, 2016 and July, 2016 when compared with the increase of (+) 0.77 per cent between the some two months a year ago.