Expected DA: Cabinet to approve the Dearness Allowance hike soon

Expected DA: Cabinet to approve the Dearness Allowance hike soon

"The Central cabinet is likely to give its approval to a two percent Dearness Allowance hike, with effect from January 2017, to the Central Government employees."

The cabinet is, at its next meeting, expected to give its approval to the additional Dearness Allowance of two percent to Central Government employees and pensioners, to come into effect from January 1, 2017 onwards.

The 2% Additional Dearness Allowance hike will be calculated on the basis of the basic pay as recommended by the Seventh Pay Commission, and will be given to more than 47 lakh Central Government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

The Dearness Allowance, issued once every six months, is given to Central Government employees and pensioners to help them manage the increase in prices of essential commodities. The Dearness Allowance is calculated on the basis of the Consumer Price Index Numbers for Industrial Workers on Base Year 2001=100.

The percentage for January 2017 was arrived at by recording the prices of essential commodities at 78 towns and cities across the country, for the months of July 2016 till December 2016. Based on the data and calculation, the percentage may be fixed at 4.95 percent. But, according to the method prescribed by the Pay Commission, the decimal numbers are ignored. Hence, a Dearness Allowance of four percent will be issued with effect from January 1, 2017 onwards.

The table is given below for more information to arrive the percentage calculation.

M/Y	CPI(IW)BY 2001=100	Total 12 Months	12 Monthly Average	% Increase Over 261.42 for DA
Jul -16	280	3245	270.42	3.44
Aug - 16	278	3259	271.58	3.88
Sep - 16	277	3270	272.50	4.23
Oct - 16	278	3279	273.25	4.53
Nov -16	277	3286	273.83	4.75
Dec - 16	275	3292	274.33	4.95

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2% Dearness Allowance Hike Likely For Central Government Employees From January 1

2% Dearness Allowance Hike Likely For Central Government Employees From January 1
The Centre is likely to announce a hike of 2-4 per cent in dearness allowance for its about 50 lakh employees and 58 lakh pensioners later this month.

New Delhi: The Centre is likely to announce a hike of 2-4 per cent in dearness allowance for its about 50 lakh employees and 58 lakh pensioners later this month.

Dearness allowance and dearness relief are provided to employees and pensioners to neutralise the impact of inflation on their earnings. The labour unions, however, are not happy with the proposed hike saying it would not be able to offset the real impact of price rise.

"The dearness allowance as per the agreed formula by the Centre works out to be 2 per cent which would be effected from January 1, 2017," Confederation of Central Government Employees President K K N Kutty told PTI.

However, Kutty expressed dissatisfaction over such a "meagre" hike saying that the consumer price index for industrial workers (CPI-IW) which is an agreed benchmark for increasing dearness allowance is far from reality.
He said that there is difference between the quantum of price rise of commodities ascertained by the Labour Bureau and the Ministry of Agriculture.

CPI-IW is an imaginary number due to poor quality of data collection by Labour Bureau and it is far from reality, he claimed.

The average CPI-IW to be taken into account for raising DA is 4.95 per cent from January 1 to December 31, 2017. Since the government has already hiked the dearness allowance by 2 per cent in October last year from July 1, 2016, it will now raise it further by 2 per cent.

As per an agreed upon formula, the Centre hikes the allowance taking 12-month average of retail inflation. The government does not consider the price rise rate beyond a decimal point for deciding the rate of the dearness allowance.

Therefore, despite the fact that the hike works out to be 2.95 per cent, the government will ignore the rate of price rise beyond decimal point and increase the DA by 2 per cent.

The dearness allowance is paid as proportion of the basic pay of the central government employees.
Kutty said that the federation in the next meeting of the national council would make a case for considering the fractions while fixing DA.

The national council is an apex forum functioning under the Department of Personnel and Training where unionists and senior official discuss issues concerning central employees.

Earlier last year, the government hiked DA by 6 per cent to 125 per cent of basic pay. The DA was later merged into the basic pay following the implementation of the 7th Pay Commission award.

At present the Central government employees and pensioners are entitled to 2 per cent dearness allowance, which was effected from July 1, 2016.

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NFIR: Agenda Points for Next NC JCM Standing Committee Meeting

NFIR: Agenda Points for Next NC JCM Standing Committee Meeting

No.IV/NFIR/SCM/Pt.VI

Dated: 05/03/2017

The Secretary,
JCM (Staff Side),
13-C, Ferozshah Road,
New Delhi

Dear Brother.
Sub: Agenda Items for next meeting of Standing Committee of NC (JCM)-reg.
Ref: Ministry of Personnel, Public Grievances & Pensions, DoP&T’s letter No.F.No.3/3/2016-JCA dated 1st March 2017.

Please find enclosed the items to be included in the agenda for meeting.

Yours faithfully,
sd/-
(Dr.M.Raghavaiah)
General Secretary

Sub: Counting full service of Temporary causal labourers for pensionary and retirement benefits in Railways-reg.

The Staff Side had discussed its demand for counting fulI service of temporary status of casual labourers for pensionary and retirement benefits at the level of Railway Ministry. Consequently, the Railway Ministry had agreed and accordingly proposal was sent to the Ministry of Finance and DoP&T seeking clearance. Unfortunately, the MoF/DoP&T have not accorded approval:-

In this connection, the Staff Side brings following key points for consideration.

(a) The Casual Labourers in Railways had attained temporary status on completion of prescribed days of continuous working and got the benefits admissible to temporary Railway/Government employees such as regular Pay Scale, Medical facility etc.,
(b) The Railway Administrations have however taken abnormally long periods to absorb them as regular staff although regular posts were vacant.
(c) The status of casual labourers in railways after acquiring temporary status (termed as Temporary employee) is exactly similar to the substitutes in whose case, the total service from the date of attainment of temporary status is counted for reckoning qualifying service for pensionary benefits.
(d) Various CATs, High Courts and even the Apex Court have given decisions against the differential treatment between the casual labour and substitutes particularly when both attained temporary status and directed to treat them at par so far as reckoning the service from the date of temporary status till the date of regularization for pensionary benefits etc.,
(e) The SLPs filed by the Union of India before the Apex Court in a few cases of casual labourers were dismissed and the Hon'ble Supreme Court had directed the Union of India to calculate Pension and other retiral benefits payable to the retiring/retired employees, taking into account the 100% temporary status service.

The Staff Side, therefore, requests to consider the above valid points and accord approval for counting total temporary status service of Casual Labourers for pensionary benefits in Railways.

Sub: Modified Assured Career Progression Scheme (MACPS) for the Central Government Employees - Arbitrary revision of benchmark from Good to Very Good-reg.

The Staff Side brings to the notice of the Government that after introduction of the Modified Assured Career Progression Scheme (MACPS) w.e.f. 01st June 2009, the JCM (Staff Side) took up the issue relating to the benchmark laid down for granting financial upgradation under the schemd at the level of DoP&T and discussed in the Joint Committee Meetings and National Advisory Committee Meetings held on 17/0712012 ad 2710712012, urging to reconsider the benchmark concept taking into consideration the norms laid down for promotion of staff. After discussions, the DoP&T vide O.M. No. 35034/3/2008-Estt. (D) (Vol. II) dated 1st November 2010 & 4th October 2012 had issued instructions that the benchmark maintained for filling the vacancy through promotion by selection/non-selection/fitness be adopted for granting financial upgradation.

The Staff Side however, expresses its disappointment over the decision (Resolution No.1-2/2016-IC dated 25th July 2016) of the Ministry of Finance (Department of Expenditure) introducing the benchmark "Very Good" for granting financial upgradation. The Government could have taken into consideration the bilateral agreement reached with the JCM (Staff Side) and the decision communicated vide DoP&T O.M. dated lst November 2010 and 4th October 2012 for continuance of the standard prescribed already for granting MACP. Ignoring the said decision and introducing the benchmark concept of "Very Good" is an unjustified action when bilateral agreement had already been reached with the JCM (Staff Side).

The Staff Side therefore urges to review for cancellation of upgraded bench mark decision.

Source: NFIR

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