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Thread: Merger of DA with Basic Pay.

  1. #1
    Junior Member harryrakhraj is on a distinguished road
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    Default Merger of DA with Basic Pay.

    While rejecting the merger of DA (beyond 50%) with Basic Pay, the 6CPC has recommended the increase in Allowances of upto 25%. This could be a relief to serving personnel only. How about the Pensioners? Does the Pay Commission say anything about Pensioners in this respect??

  2. #2
    Senior Member Kanaujiaml is on a distinguished road
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    Quote Originally Posted by harryrakhraj View Post
    While rejecting the merger of DA (beyond 50%) with Basic Pay, the 6CPC has recommended the increase in Allowances of upto 25%. This could be a relief to serving personnel only. How about the Pensioners? Does the Pay Commission say anything about Pensioners in this respect??
    Dear friend. SCPC added 50%DA (called DP) into basic pension and further added 24 % on the whole amount, making it 186% on basic pension. A fitment benefit of 40 % on the amount arrived at now, was further added now to arrive at revised pension. (Basic pension x 2.26 = revised pension). Would you kindly explain wherefrom this 25 % allowance came?
    Last edited by Kanaujiaml; 02-07-2010 at 07:41 AM. Reason: for editing.

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    Senior Member tvenkatam is on a distinguished road
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    Dear Friend,

    The querist 'harryrakhraj' has posed a genuine question which needs an answer.

    In the past whenever the dearness allowance crossed the 50% mark, the same was merged with the basic pay in the form of dearness pay. In the new pay regime there will be NO conversion of dearness allowance in to dearness pay whenever the DA reaches 50% mark. Instead, the allowances such as TA/DA, CEA, WA etc., admissible to serving employees only would be increased by 25%. Employees not availing these allowances and all pensioners will have no advantage (of the erstwhile dearness pay system of conversion of DA) in future whenever the DA crosses the 50%, 100%, 150%,.. mark.

  4. #4
    Senior Member RKPATHAK is an unknown quantity at this point
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    Default merger of da

    as per 6cpc once da reached 50% all allowances shall be increasd by 25%. According tio this DR shall also be increased by 2%

  5. #5
    Senior Member tvenkatam is on a distinguished road
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    Quote Originally Posted by RKPATHAK View Post
    as per 6cpc once da reached 50% all allowances shall be increasd by 25%. According tio this DR shall also be increased by 2%
    Dear Friend,

    There will be no increase in the DA/DR. HRA and Transport allowance also will not increase. Only the other allowances such as Children Education Allowance, Washing allowance, Cycle allowance, Bad climate allowance, Cash handling allowance, TA/DA on transfer/Tour, Special compensatory allowances, etc., will increase by 25% when the Dearness allowance reaches 50%.

  6. #6
    Member Imayan is on a distinguished road
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    Default Merger of DA with basic pay / pension

    Govt. of India have conveniently replied to a Parliament question ,recently, that 6th CPC has not recommended any merger of DA with Basic pay / pension when ,in future, DA crosses 50 %. Do we wait to knock at the doors of the prospective 7th CPC ? When ?

    To prepare a study/ representation, I require data on the DA rates from Jan' 1970 till
    Mar ' 1989
    .Can anyone help me with this data? If you do not have this data, please suggest a source from where I can collect this data of DA rates from Jan 1970 till Mar' 1989.

    Thanks.

    Imayan

  7. #7
    Senior Member vnatarajan is on a distinguished road
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    Pl approach the admin of this website.
    Their database contains such data.

    Also the CGEmployees News website also may contain.
    Some confederation website salso contain the data.
    vnatarajan

    PS: As an example chk this source at the link:

    http://www.referencer.in/TA_DA_Rules/DA_Rates.aspx
    Last edited by vnatarajan; 18-05-2013 at 01:36 PM.

  8. #8
    Member Imayan is on a distinguished road
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    Thanx VN for your quick response.
    I had already contacted referencer.com and they have uploaded data from 1996 only.
    I have already collected from Apr 1989 onwards.What i require is from jan 1970-March 1989.
    I will ,now,approach Administrator of Gconnect /CGEmployees websites.

    Regards,

    Imayan

  9. #9
    Member kssitaraman is on a distinguished road
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    Ref: Shri Imayan’s Post above requiring DR data for the period Jan. 1970 to March 1989.

    I am giving below excerpts from a Book titled “GENERAL KNOWLEDGE FOR CG CIVILIAN PENSIONERS, VOLUME 2, MARCH 2005” authored by Late Shree P.N.Padmanabhan, IRSEE (Rtd)

    Quote begins. Till august, 1973, there was no regular scheme to compensate the pensioners/family pensioners, for erosion in the value of the rupee, due to increase in the consumer price index. However, they were paid temporarily relief on 1/1/1958, 1/10/1963, 1/9/1969 and 1/1/1973. Arbitrarily, a token relief of Rs 10 to Rs.12.50 was sanctioned in April 1958. This was further increased to by Rs.5/- to Rs 10/- in October 1963. Another increase @ Rs 10 was made in September, 1969. Thereafter, that adhoc amount was further increased by Rs 15 to Es 35 p.m. in Jan. 1973. (So From Jan. 1970 the DR was @ Rs 35/- p.m.).

    xxxxxxxxxxxxxxxxx

    As per the III CPC recommendations, GOI arbitrarily sanctioned DR @ 5% on pension to all pensioners irrespective of the amount of pension drawn by them, subject to a minimum of Rs 5/- and a maximum of Rs 25/- p.m. for every 16 points rise in twelve monthly average of the AICPI (Base 1960 = 100). From 1/12/1980, this was modified and DR to pension was fixed @ 2.5% for every 8 points rise in the AICPI, subject to a minimum of Rs 2.50 and maximum of 12.50 p.m. By this, pensioners got a neutralisation of about 62% only, that too for those drawing pension upto Es 500/- only……

    Between 1/1/1973 and 31/12/1985, the consumer price index rose from 200 to 606 (an increase o 408 points). By this, on 31/12/1985, the serving employees drawing pay upto Rs 400/- p.m. got DA @ 4% of their pay for every 8 points increase viz., 2045 BENEFIT. Whereas, pensioners, irrespective of their amount of pension , got DR of 2.5% for every 8 point increase in the index, viz., 127.5% only. ……….

    Prior to 1/1/1986, there was no correlation between DA to serving employees and DR to pensioners. IV CPC recommended adoption of slabs for regulating DR to pensioners @ 50% of the slabs prescribed for regulating DA to serving employees. When pension was 50$ of pay, it recommended that pension plus DR should be 50% of Pay plus DA. (This was a great injustice done to the pensioners……)

    xxxxxxxxxxxxxxxx

    Gradual increase in DR to Pensioners from 1/1/1986.

    The DR was 117.5%, 120%, 122.5%, 125% and 127.5% with effect from 1/4/1985, 1/5/1985, 1/8/1985, 1/11/1985 and 1/1/1986 respectively. Quote ends.

    Two Tables showing the DR to pensioners from 1/9/1977 to 31/12/1985 and from 1/1/1986 to 30/6/1989 prepared by the Railway Department and included in the above article are also given below: -

    For those who retired i) prior to 30.09.77ii) prior to 30.04.79 and have not opted for merger of DAiii) Family pensioner and iv) pensioners in receipt of extra-ordinary pension For those who retired i) between 30.09.77 and 30.04.79 and have opted for merger of DAii) after 30.04.79 but before 31.01.82 For those who retired on or after 31.01.82 but before 31.03.85 and have opted or deemed to have opted for merger of Addl. DA in pay in terms of Board’s letter dated 08.04.1982 For those who retired on or after 31.03.85
    Rs Rs Rs Rs
    w.e.f % Min Max % Min Max % Min Max % Min Max
    1-9-77 35 35 175 15 15 75
    1-12-78 40 40 200 20 20 100
    1-11-79 45 45 225 25 25 125
    1-5-80 50 50 250 30 30 150
    1-9-80 55 55 275 35 35 175
    1-12-80 57.5 57.5 287.5 37.5 37.5 187.5
    1-2-81 60 60 300 40 40 200
    1-4-81 62.5 63 313 42.5 43 213
    1-6-81 65 65 325 45 45 225
    1-8-81 67.5 68 338 47.5 48 238
    1-10-81 70 70 350 50 50 250
    1-11-81 72.5 73 363 52.5 53 263
    1-1-82 75 75 375 55 55 275 40 40 200
    1-4-82 77.5 78 388 57.5 58 288 42.5 43 213
    1-6-82 80 80 400 60 60 300 45 45 225
    1-9-82 82.5 83 413 62.5 63 313 47.5 48 238
    1-12-82 85 85 425 65 65 325 50 50 250
    1-3-83 87.5 88 438 67.5 68 338 52.5 53 253
    1-5-83 90 90 450 70 70 350 55 55 275
    1-7-83 92.5 93 463 72.5 73 363 57.5 58 288
    1-8-83 95 95 475 75 75 375 60 60 300
    1-10-83 97.5 98 488 77.5 78 388 62.5 63 313
    1-11-83 100 100 500 80 80 400 65 65 325
    1-1-84 102.5 103 513 82.5 83 413 67.5 68 338
    1-2-84 105 105 525 85 85 425 70 70 350
    1-4-84 107.5 108 538 87.5 88 438 72.5 73 363
    1-6-84 110 110 550 90 90 450 75 75 375
    1-8-84 112.5 113 563 92.5 93 463 77.5 78 388
    1-11-84 115 115 575 95 95 475 80 80 400
    1-1-85 117.5 118 588 97.5 98 488 82.5 83 413 2.5 3 13
    1-5-85 120 120 600 100 100 500 85 85 425 5 5 25
    1-8-85 122.5 123 613 102.5 103 513 87.5 88 438 7.5 8 38
    1-11-85 125 125 625 105 105 525 90 90 450 10 10 50
    1-1-86 127.5 128 638 107.5 108 538 92.5 93 463 12.5 13 63
    1-4-86 130 130 650 110 110 550 95 95 475 15 15 75
    1-6-86 132.5 133 663 112.5 113 563 97.5 98 488 17.5 18 88
    1-7-86 135 135 675 115 115 575 100 100 500 20 20 100

    On 1/1/1986, the pension/family pension was merged (consolidated) with the DR etc which were prevalent till 31/12/1985 and it was started afresh from 1/1/1986. From then, DR was in a slab system as shown in the table below.

    From Upto Rs 1750 Rs 1751 to Rs 3000 Rs 3001 and above
    % % Min % Min
    1-1-1986 0 0 --- 0 ---
    1-7-1986 4 3 70 2 90
    1-1-1987 8 6 140 6 180
    1-7-1987 13 9 228 8 270
    1-1-1988 18 13 315 11 391
    1-7-1988 23 17 403 15 510
    1-1-1989 29 22 508 19 660


    It is hoped that this contains all the information required by Shri Imayan -- Regards, K.S.Sitaraman.

  10. #10
    Member kssitaraman is on a distinguished road
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    Dear Mr. Imayan,

    If the Tables are not clear, you may give your Email Id so that I can transmit the tables in tabulated form in an attachment.

    K.S.Sitaraman
    [email protected]

  11. #11
    Member Imayan is on a distinguished road
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    Thanx a lot Mr. Sitaraman,

    You have provided very useful information so promptly.

    Best regards,
    Imayan

  12. #12
    Member Imayan is on a distinguished road
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    Dear Mr. Sitaraman,

    Tables in tabulated form will be more useful.
    Pl. send the same to my e mail ID: [email protected]
    Best regards,

    Imayan

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