By the end of this month the rate of
Dearness Allowance is getting ready to touch 80% level. We can expect
that the rise in prices will take it to 100% level with in a couple of
year.
Dearness Allowance Vs Price Rise
The central government employee’s
confederation opined that The Dearness allowance which the cg employees
are receiving now is not enough to meet the price rise of essential
commodities.
The effect of 50% Dearness allowance on our Pay
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 that
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 DA reaches 50% level, is to make the central government
employees to balance the financial burden caused by Price Rise through
increasing their pay package.
The impact of DA Reaches 100%
According to fifth CPC, the 50 % DA had been merged with Basic Pay and in 6CPC , some allowances have been increased by 25%.
But 5th CPC 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 5th CPC
scale.
7th Pay commission
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 The central
government employees are expecting that government should constitute 7th pay commission immediately.
source : govtempdiary
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