DA from 1st July 2016 will be 3% if DA not merged taken in to account

DA from 1st July 2016 will be 3% if DA not merged taken in to account – DA merger on 7th Pay Commission implementation was 125% against the actual DA entitlement of 125.75 as on 1st January 2016 – Staff Side JCM writes to Govt

Secretary, NCJ writes to Secretary, Ministry of Finance on computing DA from July 2016

 

No.NC/JCM/2016

Dated: September 6, 2016

The Secretary(Expenditure),

Ministry of Finance,

(Government of India),

North Block, New Delhi-110 001

Dear Sir,

Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

The revised pay structure, as recommended by the 7th CPC, was given effect as on 01.01.2016 as per the Government’s Notification. The Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being ignored), got merged with Pay as on that date. The 7th CPC has not indicated as to what base figure of AICPI(IW) the Revised Wages will relate to hereafter wards. As you are aware, the actual DA that was due as on 01.01.2016 was 125.75. It is only due to the practice of ignoring fraction; the DA was determined at 125%. No doubt, the said practice had not been impacting very much except for the postponement of the benefit by six months. It is, therefore, necessary that, Revised Wages are related to a base index figure equivalent to actual Dearness Allowance percentage of 125 that stands merged as on 01.01.2016. This is more so due to the fact that there is no possibility of the ignored fraction of 0.75 being reckoned for any computation in future.

We, therefore, request that, 12 monthly average, which stood at 261.33 as on 31.12.2015, may be taken at 260.46, which would provide the exact percentage of DA at 125. The future percentage increase in DA in other words may be computed with the base figure of 260.46. The next instalment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.

Sincerely yours

(Shiva Gopal Mishra)

Secretary (Staff Side)

National Council (JCM)

Source : ncjcmstaffside

 

Enter your email address to Subscribe for 7th CPC Latest Updates:

Delivered by FeedBurner

Activation email will be sent immediately to you. Don't forget to click the activation link.

 

Facebook

 
 

About Us

One stop news and information website for Latest Updates on Seventh Pay Commission 7th CPC.