NFIR - Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004

NFIR

Merger of Dearness Allowance with the Basic Pay w.e.f. April 1, 2004

No.IV/RSAC/2020

Dated: 11/03/2020

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Merger of Dearness Allowance with the Basic Pay w.e.f. 01/04/2004 - Computation of emoluments of Running Staff for granting retirement benefits -reg.

Ref: (i) NFIR’s PNM Item No. 23/2017.
(ii) GM/N. Rly’s letter No. 720/ EW/Misc/ Union-Items/2015/E.IV/ Loose dated 16/11/2015.
(iii) Railway Board’s letter No. E(P&A)II-2014/RS-24 dated 24/08/2016 addressed to General Manager (P), Northern Railway.
(iv) NFIR’s letter No. IV/RSAC/ Conf/Part VII dated 05/09/2016.
(v) Railway Board’s letters No. E(P&A)II-2014/ RS-24 dated 22/07/2016, 04/10/2016 & 17/10/2016.
(vi) NFIR’s letter No. IV/RSAC/ 2018 dated 16/08/2019.

Federation invites kind attention of the Railway Board to the minutes of special meeting held between NFIR representatives and EDPC-I, Railway Board on 04/06/2019 relating to PNM Agenda Item No. 23/2017. When Federation explained the case and urged that the instructions issued by Northern Railway vide letter dated 16/01/2015 to its Divisions be restored and accordingly conveyed to Zonal Railways, the Official Side agreed to consider and take action for issuing clarificatory instructions. But however, there has been no positive action despite several months.passed.

This subject has again been discussed by NFIR with EDPC-I on 27/01/2020 and with EDFE on 05/02/2020 who agreed to issue clarification to the General Manager, Northern Railway for restoration and implementation of earlier instructions dated 16/11/2015. Though more than a month has passed, the clarification has not been issued yet, while the PNM item is pending since over 2 and 1/2 years.

Also check: Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 - Reckoning as pay for running staff

NFIR, once again requests the Railway Board to kindly issue clarification to the General Manager, Northern Railway for restoration of his instructions dated 16/11/2015, duly endorsing copy to the Zonal Railways and to the Federation.

Yours faithfully,
(Dr. M. Raghavaiah)
General Secretary

Source: NFIR

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Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 - Reckoning as pay

Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 - Reckoning as pay for running staff

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No. EP&A)-II/2006/RS-28.

New Delhi, dated 22.11.2016.

The General Secretary,
National Federation of Indian Railwaymen,
3, Chelmsford Road,
New Delhi - 110 055.

Sub.:- Merger of Dearness Allowance equal to 50% of basic pay w.e.f. 01/04/2004 -Reckoning as pay for running staff.
Ref.: (i) DC/JCM Item No. 15/2009.GS/NFIR's letter No. IV/RSAC/Conl/Vol.VI dated 28/03/2016

Please refer to your letter dated 28.03.2016 under reference no. (ii) on the subject noted above. Iii this connection, it is mentioned that Board’s letter dated 21.10.2014 addressed to both the Federations highlighted that the basis for the exclusions was the Ministry of Finance's OM dated 01.03.2004 on the merger of 50% DA with Basic Pay that was adopted by the Ministry of Railways. Vide letter dt.
28.03.2016, however, NFIR. has not agreed with the reply and has reiterated that the exclusions violate the IREM provision of. Running Allowance and that the OM dt. 01.03.2004 of MoF is not relevant in this connection.

For a better understanding of the logic on which the three exclusions have been made the table given below may kindly be seen:-

Clause No.	Benefit of 30% pay element (mentioned in the clause)applicable to Running Staff	Relevant wording in MoF O.M. dated 01.03.2004 pertaining to the benefit	Remarks
a	Entitlement for pass/ PTO	LTC Specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay	As Railways do not have LTC. Pass /PTO revision excluded accordingly vide RBE No.77/2008
d	Fixation in pay in Stationary Posts	Fixation of pay not included as an admisssble benefit for revision of entitlement on merger of 50% DA with Basic Pay	Counting of the benefit (of merger of DA with Basic) for Fixation of pay is an issue pertaining to all Government employees and not merely Running Staff of Railways. When this benefit has not been extended to any Government employee, it cannot be extended to Running Staff consolation. RBE No.77/2008 has been issued accordingly. As erest while Basic Pay element (without merger of 50% DA) however continued to be admissible for Fixation of pay of Running Staff in Stationary posts, there is no violation of relevant REM provision.
g	Entitlement of Quarters	Government accomadation specifically excluded from revision of entitlement on merger of 50% DA with Basic Pay	As Railway Quarters are Government accomadation, revision of entitlement has been excluded accordingly vide RBE No.77/2008

As brought out in the table above there has been no violation of the Rules.It is therefore requested that the item may be closed.
For Secretary Railway Board

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Merger of Dearness Allowance with the Basic Pay - Computation of emoluments of Running Staff for granting retirement benefits

Merger of Dearness Allowance with the Basic Pay - Computation of emoluments of Running Staff for granting retirement benefits

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

E(P&A)II-2012/DC/JCM/1

New Delhi, Dated 17.10.2016

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi - 110055

Sub: Merger of Dearness Allowance with the Basci Pay w.e.f. 01.04.2004 - computation of emoluments of Running Staff for granting retirement benefits - reg.

Ref: NFIR's letter No.IV/RSAC/Conf./Part VII dated 05.09.2016

I am directed to refer to your letter dated 05.09.2016 wherein the Federation has mentioned that Northern Railway has vide letter 720/EW/Misc/Union-Items/2015/E.IV/Loose dated 16.11.2015 correctly computed the emoluments of Running Staff with reference to Dearness Allowance and 30% thereon for the purpose of allowing the retirement benefits to those Running Staff who had retired during the period 01.04.2004 and 31.12.2005.

The matter has been examined in Baord's office and its observed that the methodology for computation contained in Northern Railway's letter referred to above, is not in conformity with the instructions on the matter as laid down in Baord's letter No.E(P&A)II-2004/RS-13 dated 12.10.2004, Northern Railway has accordingly been advised to take immediate corrective action in the matter vide Board's letter No.E(P&A)II-2014/RS-24 dated 22.07.2016.

Yours faithfully,
sd/-
For Secretary/Railway Board

Source: NFIR

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Central Government Employees to march Parliament on 28th, demand scrapping of NPS, merger of DA

Central Government Employees to march Parliament on 28th, demand scrapping of NPS, merger of DA

Central Government employees have decided to hold a demonstration near Parliament on April 28 for bringing to notice their long-pending demands such as scrapping of the new pension scheme, merger of dearness allowance, and putting a stop to outsourcing, among others.

According to a release, the demonstration would press the long-pending demands of Central Government employees including scrapping the New Pension Scheme (NPS), merger of dearness allowance (DA) in Pay, redressal of pending anomalies of the Sixth Central Pay Commission, interim relief, scrapping foreign direct investment, and public private partnership schemes, filling of vacancies, stopping outsourcing, enhancement of the limit of bonus, and on the other side various amendments in labour laws, among others.

On the call of the National Joint Council of Action (NJCA), the Convener of NCJCA Shiva Gopal Mishra said in a release various associations will participate in the demonstration including the All-India Railway Men’s Federation, the National Federation of Indian Railwaymen, the All-India Defence Employees’ Federation, the Indian National Defence Workers’ Federation, the National Federation of Postal Employees’ Federation, the Federation of National Postal Organisation, and the Confederation of Central Government Employees. Besides, some state employees will also participate in the demonstration.

Mishra further said if the Government does not take the “united movement seriously” to resolve the issues, they would be forced to take precipitate action for which the Centre would be responsible.

Source: paycommissionupdate.blogspot.in

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50% DA MERGER - Impact of Merger of 50% Dearness Allowance with Basic Pay

50% DA MERGER - Impact of Merger of 50% Dearness Allowance with Basic Pay

Any possible to convert 50% of dearness allowance to dearness pay..!

Everyone's pointing fingers at "Parliament Election"...!

50% DA MERGER

50% of dearness allowance had been merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004. This was followed the recommendation of 5th Central Pay Commission and the Union Government had decided to merge 50% of dearness allowance with baisc pay and issued orders on 1.3.2004.  (61% - 50% = 11%) 50% of dearness allowance merged with basic pay and remaining 11% had been issued as normal dearness allowance with effect from 1.1.2004.

Example : An employee's Basic Pay had revised as under on 1.1.2004 after 50 % DA merged with basic pay...

Basic Pay	Dearness allowance 61%	Total	Basic Pay	Dearness Pay	Remaining percentage of Dearness allowance 11%	Total	Difference
4000	2440	6440	4000	2000	660	6660	220

[And the next instalment of additional dearness allowance from 1.7.2004 declared as 3%, then the total dearness allowance went up to 14%. When implementation of 6th CPC, the above employee's basic pay was 4200 as on 1.1.2006, it just multiply with 1.86 and add with corresponding grade pay.]

Everybody thinking as more benefit on 50% of DA merge with basic pay...not like that..!

It is essential to CG Employees, of course for others, getting from some other way in hike in regular income...

For Example, an employee's basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the calculation is clearly shows the difference only 50 rupees per month...

Basic Pay	Dearness allowance 51%	Total	Basic Pay	Dearness Pay	Remaining percentage of DA 1%	Total	Difference
10,000	5100	15100	10000	5000	150	15150	50

"Note that the 50% of Dearness allowance will not merged with basic pay, instead of the amount showing only as 'Dearness Pay'. This amount will pay upto only the date of implementation of 7th pay commission. 

This is only as a advance hike for all employees before the implementation of 7th CPC. 

When fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the revised pay rules, the amount of ‘basic pay’ will be taken without dearness pay. 

For example, approximately basic pay of the above employee will be 12,250 as on 1.1.2016 . This amount only will be taken as Basic Pay for the calculation of pay fixation against the amount of 18,375. 

The enhanced amount will be given for us as ‘Interim Relief’ for the period between announcement and implementation...It is not at all merged with ‘Basic Pay’..!

We can hear, what about hike in HRA and other entitlements...

The rate of HRA is provided according to the cities, like 10, 20 and 30%. Don't think all Central Govt Employees are getting 30%. And one more important points is the percentage hike in HRA will not applicable to those who are living in Government Quarters. In major metropolitan cities, thousands of employees are residing with Government Accommodation. They will pay more as HRA to Government and they don’t bother about increasing in HRA. 

Transport Allowance is providing according to their GP and classified cites, the amount is vary from 400 to 3200 plus DA thereon. The TA amount may decrease when 50% of DA merged with basic pay. 

So, ultimately hike in Basic pay only the factor is more beneficial in DA Merger.

But in 6th CPC there was no recommendation to convert dearness allowance as dearness pay each time the CPI increase by 50% over the base index recommended in pay commission report. 

All Central Government employees federations are showing maximum effort to achieve the demand of "Merger of 50% Dearness Allowance with Basic Pay" at this time. 

 Federations sources said, there will be chance to announce before March...!

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/50-da-merger/]

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Merger of Dearness Allowance with the Pay: PMO forwarded NFIR's letter to DoPT

Merger of Dearness Allowance with the Pay: PMO forwarded NFIR's letter to DoPT

Reproduced Text of PMO letter to DoPT regarding Merger of Dearness Allowance with the Pay of the Central Government Employees:-

 

Prime Minister’s Office 

New Delhi – 110101

Sub: LETTER OF Sh. M RAGHAVAIAH NFIR, 3, CHELMSFORD ROAD, NEW DELHI-55

A letter dated 27-09-2013 received in this office from Sh. M RAGHAVAIAH is forwarded herewith for action as appropriate.

sd/-

[RITU SHARMA] 

SECTION OFFICER

SECRETARY, D/O Personnel & Training, M/O Pers, P.G. & Pensions
---------------------------------------------------------------------------------------
PMO ID No.1/3/2013-PMP2/94821 dated 17-10-2013

Reproduced text of NFIR letter to PMO in this regard:-

NFIR 

National Federation of Indian Railwaymen 

3, CHELMSFORD ROAD, NEW DELHI- 110055 

Affiliated to: 

Indian National Trade Union Congress (INTUC) 

International Transport Workers’ Federation (ITF)

No. 1/5 (A)

Dated: 27.09.2013

Hon’ble Prime Minister of India,
Raisina Hill,
South Block,
New Delhi.

Respected Sir,

Sub:- Merger of Dearness Allowance with the Pay of the Central Government Employees – reg.

While thanking you for the decision for appointment of 7th Central Pay Commission, we request you to kindly appreciate that the Dearness Allowance paid to the Central Government employees had crossed 50% of pay as on 01.01.2011. This portion of the Dearness Allowance needs to be merged with the Pay for all purposes as was done in the year 2004.

 

2. According to the figures available, the Central Government employees will get at least 9% increase in the Dearness Allowance w.e.f. 01/01/2014 thus the DA may be almost 100% of pay.

 

NFIR, therefore, requests you to kindly see that Government takes decision for merger of 50% DA with pay for all purposes with effect from January 1, 2011.

Yours faithfully, 

sd/- 

(M. Raghavaiah) 

General Secretary

Source: NFIR
[https://docs.google.com/file/d/0B-4C7fBGTmYGUzNOMTRSMU5wMzg/edit?usp=sharing]

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Item Wise reply of Railway Board on the issues raised by AIRF

Item Wise reply of Railway Board on the issues raised by AIRF. 

 

The following issues raised by Federations which are outside the purview of this Ministry were referred/have been referred to concerned Ministries/Deptts. :-

 

S.No.	Item	Officer(s) concerned	Comments from the concerned Dte.
1.	Setting up of VII Central Pay Commission without further delay.	EDPC-II	The issue raised under this item comes under the pruview of Ministry of Finance. Accordingly, the matter referred to MOF.
2.	Merger of DA with pay	EDPC-II	The issue raised under this item comes under the pruview of Ministry of Finance. Accordingly, the matter referred to MOF.
3.	Scrap New Pension Scheme and cover all the staff with pension and family pension scheme as available to staff appointed prior to 1.1.2004.	EDF(E)	The decision of introducing New Pensoin System for all the new entrants to Government/Railway Service on or after 1.1.2004 is of the Government of India taken in the Ministry of Finance, Department of Economic Affairs. The Ministry of Railways, being an Administrative Ministry in respect of pensionary matter is bound to adhere to the decision taken by the Government and is not empowered to take any unilateral decision in the matter. Accordingly, the matter referred to Deptt. of Financial Services.
4.	Stepping up of pay of senior employee on par with junior employee consequent on modification of ACP Scheme as MACP is pending with the Railway Board.	EDPC-I	For the purpose of MACP Scheme, Department of Personnel and Training is the nodal Department of the Government and instructions issued by them on this usbject ar adopted by this Ministry in reapect of Railway Employees. The issue regaring stepping up of pay of senior employees at par with their Junior drawing higher pay under MACPS has been examined in consultation with DoP&T on a reference from the Fedetations. DoP&T have advised that stepping up of pay of senior at par with thier junior drawing higher Grade Pay under MACPS is not admissible. Since, DoP&T is the nodal Department for the purpose of MACPS, this Ministry is not in position to take any unilateral decision on the matter.
5.	Increase the amount of Fixed Medical Allowance to all RELHS beneficiaries.	EDPC-I	For the purpose of Fixed Medical Allowance (FMA), Department of Pension & Pensioners’ Welfare is the nodal Department of Govt. and instructions issued by them on FMS, are adopted by this Ministry in respect of Railway pensioners. As such, this Ministry is not in position to take any unilateral decision on this subject. Accordingly, the matter referredt ot DOP&PW.
6.	Exempt Transport Allowance and Special Duty Allowance for the pruview of Income Tax deduction.	DF(X)-I	The matter regarding increases in the eligible exemption limit in the case of tranport allowance from Rs.800/- p.m. to Rs.3200/- p.m. was referred to the Ministry of Finance. However, the request of the Ministry of Railways has not been agreed to by the Ministry of Finance.  2. The matter regarding exemption of Special Duty Allowance for the purview of Income Tax has been referred to the Ministry of Finance vide Boards O.M. No. F(X)I-2009/23/6 dated 24/9/2012. Reply is still awaited therefrom.
7.	Raise the ceiling limit of Rs. 3500 for the purpose of payment of PLB.	EDPC-I	Productivity Linked Bonus is paid on the Railways in accordance with the scheme of Productivity Linked Bonus arrived at in consultation with the recognized federations and approval of the Government. The computation ceiling for payment of PLB has been prescribed as Rs.3500/- p.m. by the Ministry of Finance, which is the nodal Ministry and this ceiling is applicable to all Ministries & Departments of the Central Govt. Ministry of Railways cannot unilaterally take a decision in the matter. Accordingly, the matter referred to MOF.
8.	Upgrade all categories of staff in Grade Pay of Rs. 2400 to Rs. 2800	EDPC-II	The pay scale of various categories of Central Government employees including Railway employees are based on the recommendations of the Central Pay Commission and accepted by the Central Government. A unilateral decision cannot be taken by Ministry of Railways on the demand raised by the Federation as it is beyond the purview of Ministry of, Railways. Accordingly, the matter referred to MOF.
9.	Granting of one increment for the employees in the categories Like MCMs, Loco Running Staff, SMs, P.Way Supervisors etc when they get horizontal promotions without reckoning the same as “Promotion” for the purpose of granting financial up gradation under MACP.	EDPC-I	For the purpose of MACP Scheme, Department of Personnel & Training is the nodal Department of the Govt. and instructions issued by them on this subject are adopted by this Ministry in respect of Railway employees. As per the instructions contained in Para-8 of Annexure to policy instructions on MACPS, promotion earned in the post carzying same Grade pay in the promotional hierarchy as per recruitment rules shall be counted for the purpose of MACPS. Since, DoP&T is the nodal Department for the purpose of MACPS, this Ministry is not in position to take any unilateral decision on the matter. Accordingly, the matter referred to MOF.
10.	Grant parity in pension and family pension to the staff/family retired prior to 01.01.2006	EDF(E)	In this regard it is stated that neither the 6th Pay Commission appointed by the Government has recommended nor any decision for giving full parity in pension to pre-2006 retirees with post 2006 retirees has been taken by the Government. The Ministry of Railways being an Administrative Ministry in respect of pensionary matters is bound to adhere to the decision taken by the nodal department, the DOP&PW, Accordingly, the matter referred to Ministry of Personnel, PG & Pension.
11.	Raise the ceiling of Incorne Tax deduction‚ from Railway employees, Ministry of Railways are from Rs. 2.00 lakh to Rs. 3.00 lakh, as recommended by the Standing Committee on Finance.	DF(X)II	In all matters relating to recovery of Inocme Tax from Railway employees, Ministry of Railways are guided by the provisions of Income Tax Act, 1967 and various instructions received from the Ministry of Finance (Central Board of Direct Taxes) from time to time. The MoF is the nodal ministry dealing with this subject. As such, the Ministry of Railways can not take any unilateral decision in che matter. Accordingly the matter referred to MOF.
12.	Implement pending Board of Arbitration Awards on House Rent Allowance, Over Time, Transport Allowance besides pay scales of Accounts Department staff.	EDPC-I	For the purpose of these subjects, Ministry of Finance is the nodal Department of Govt. and this Ministry is following instructions issued by them from time to time. So far no decision as such on these issues from Ministry of Finance has been received. As MoF is the nodal Ministry on these subjects, it is not possible to take any decision unilaterally. Accordingly, the mattter referred to MOF.
13.	Rectification of MACP anomalies.	EDPC-I	For the purpose of MACP Scheme, Depatment of Personnel & Training is the nodal Department of the Govt. and instructions issued by them on this subject are adopted by this Ministry in respect of Railway employees. The issues raised by the Federations from time to time are examined in consultation with DOP&T and decided accordingly. Since, DOP&T is the nodal Department for the purpose of MACPS, this Ministry is not in position to deviate from the instructions/clarifications issued by them on the subjects. Accordingly, the matter refer to DOP &Trg.
14.	Enhancement of Income Tax exemption limit in the case of Running Staff	DF(X)II	The matter regarding enhancement of Income Tax Exemption Limit in the case of Running staff reckoning of Running Allowance as pay for the purpose of deduction of Income Tax was referred to the inistry of Finance. However, the request of the Ministry of Railways has not been agreed to by the Ministry Of Finance.

Source: AIRF

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