WHEN DA WILL REACH TO 100%---------------WHAT WILL BE HAPPENED?
At present DA is 80% level. We can expect that it will reach to 100% level near future.
The aiacegeo
opined that the Dearness allowance which the cg employees are receiving
now is not enough to meet the price rise of essential commodities.
The retail price of those commodities which go into
making of minimum wage have risen by about 160% between 1.1.2006 to 2011
in comparison to D.A. compensation, which on the date had been just 51%
The sixth pay commission recommended that Whenever the DA reaches 50% level , Some allowances have to be increased by 25 % .
Where as in Fifth CPC , it had been recommended when the DA reaches 50 %
it should be merged with Basic Pay. It has been implemented with effect
from 2004. And the fifth cpc also recommended that the Pay and
Allowance should be revised after every five years. But it was not
accepted by the Government. The objectives of increasing Allowances by 25% as per
the 6 CPC or merging DA with Basic pay as in the case of 5CPC, when
ever DA reaches 50%, is to make the central government employees to
balance the financial burden caused by Price Rise through increasing
their pay package.
According to fifth CPC the 50 % DA had been merged
with Basic Pay and in 6CPC , some allowances have been increased by 25%.
But 5CPC didn’t say anything about what should be done when DA touch
100% level. Because the govt servants receiving their pay as per pre
revised pay were not granted merging of another 50% of DA in 5CPC scale.
Even after the rate of DA is increased to 50% level
it is not enough to increase some allowance by 25% as it will not help
to handle the expenses caused by inflation. So AIACEGEO is likely to demand that Govt. should constitute 7th pay commission immediately.
