V PART: DATE OF EFFECT, MERGER OF DA,
CALCULATION OF DA & INTERIM RELIEF;
6. DATE OF EFFECT:
Date of effect of implementation of 7th
CPC: The recommendations of the CPC are at present
being implemented in a period of 10 years. But wage revision for employees /
workers of various central public
sector undertaking is done in 5 years duration. As such it is requested that the recommendations of
the VII CPC be made applicable to the employees as well as pensioners with effect from
01-01-2014, at least after a period of 8 years. Moreover the percentage of DA as
on 01.01.2014 was 100%, therefore the recommendations of 7th CPC
should be effective from 1.01.2014
CONCLUSION:
We suggest that Honourable 7th
CPC may kindly be pleased to recommend for implementation of their recommendations w.e.f. 01.01.2014.
7.
MERGER OF DA .
Honhle 7th Pay Commission may kindly appreciate that the
Dearness Allowance (D.A.) has become 100% of pay w.e.f. 01/01/2014. The DA was 50% as on 01.01.2011. This scenario
was never anticipated by the 6th CPC. It may however be appreciated that in the
past, the Government had merged DA with pay when it crossed 50% (In the year
2004). It was the well considered suggestion of V CPC that whenever DA
exceeded 50%, it should be merged
with basic Pay. Now the DA has exceeded 50% from 01-01-2011 and 100% from 01-01-2014.
CONCLUSION:
We
suggest that Honourable 7th
CPC may kindly recommend that 50% DA be
merged with basic Pay retrospectively from 01-01-2011 and the consequential arrears may be disbursed to the employees.
8.
Interim Relief:
We suggest that Honourable 7th Pay Commission may recommend 25% of basic
pay/ pension as Interim Relief to all
the employees.
9. DA
CALCULATION:
A rational methodology for computing
DA is to be evolved, and the periodicity changed to quarterly from the present half yearly. The system of computation of Consumer Price Index (CPI) should be reviewed as the
present index is causing heavy financial loss to the employees. At present DA
is given to the employees half yearly
taking into account the average
consumer price index for 12 months. It is claimed that full neutralization of the cost of living is effected in
granting the DA. The claim dose not stands the scrutiny of the contemporary economic
stratification. For example, on 01-01-2006, i.e, at the time of implementation of VIth Pay
Commission the DA was nil. Now on 01-01-2014 after giving full neutralization the DA has
arrived at 100%. The conclusion is that the cost of index based on the present methodology
of calculation has only doubled. But the reality is that the cost of essential commodities
has spiraled manifold. Hence a rational methodology for computing DA is to be evolved, and the
periodicity changed to quarterly from the present half yearly.