01 Jul, 2016 09:56 PM

DA merger would have been better than new pay

From Social Media share

When the Cabinet cleared hike in pay for Central Government staff, print as well as visual media used the word “Bonanza”. But I’m wondering who are getting this “bonanza”...

According to the Oxford dictionary, ‘Bonanza’ means “a situation which creates a sudden increase in wealth, good fortune, or profits.”

As per the media reports, the starting salary for new recruits at the lowest level has been raised to Rs.18,000/- from Rs.7,000/- per month, which means there is 157% hike in the starting salary. But reality is that the new recruits at the lowest level are already getting Rs.15,750/- as the starting salary w.e.f. 01.01.2016 (Rs.7,000 + 125% DA). That means they are getting an increase of just Rs.2,250/- (14.29%) in their starting salary after the implementation of the 7th CPC, that too after a long period of 10 years.

Further, if we are analyzing the same situation in another perspective where the DA is merged with the basic pay when it reaches 50%:

Rs.7,000 + 50% DA = Rs.10,500/-

Again, Rs.10,500 + 50% DA = Rs.15750/-

As on 01.01.2016: Rs.15,750 + 19% DA = Rs.18,743/-.

Hence, one can easily say that merging of DA with the Basic Pay when it reaches 50% was more beneficial for the staff instead of spending much time and money for the 7th CPC (even merging of DA when it reaches 100% will be almost same as the new starting pay suggested by the 7th CPC after so much research work).

In general, suppose the basic pay is Rs.100/-, then the present salary of a central government employee as on 01.01.2016 will be Rs.225/- (Rs.100 + 125% DA). Now, after the implementation of the 7th CPC, he will get Rs.257/-, which means 14.22% hike in the new basic pay.

There is an added benefit on HRA as it is calculated on the revised basic pay but there is a proposal to revise it downward.

Of course, the new Pay Matrix system adopted by the 7th CPC will be beneficial for those in the high echelons especially those who are enjoying the privilege of time bounded promotions.

There is a general feeling that many ‘Department specific’ issues as well as other demands of the employees in general have not been addressed by the Justice A.K.Mathur Commission properly. Hence the National Joint Council of Action (NJCA) consisting of trade unions of 14 lakh railway employees, 4 lakh defence employees, 4 lakh postal employees and other central government employees have decided to go for an indefinite strike from 11th July, 2016 against the retrograde implementation of the 7th CPC.