19 Feb, 2014 8:17p.m.

ToR for 7th Pay Commission likely this week. 50% DA merger, Interim relief likely

The reliable sources have indicated that the UPA government is expected to ask the seventh pay commission to consider merging 50% dearness allowance with basic pay of the employees.

The merger will form part of the terms of reference (ToR) for the seventh central pay commission, which will be taken up by the Cabinet this week. The sources indicate that the issue of interim relief also will be considered.

Officials said the ToR of the Pay Commission categorically states that a proposal in this regard should be actively considered.

DA merger Interim relief
Thats not all cabinet is expected to announce the dearness allowance hike by 10% to 100% by the end of February.  (Read : December CPI-IW at 239, Down but still DA to be 100% wef January, 2014During the period of 5th CPC, the DA is merged with the basic pay when the former goes beyond 50%. As the DA is touching 100%, almost all unions are pressing for the merger. (Read : With DA touching 100%, demand for DA merger to intensify
A DA merger will increase the basic pay by 50%. The major impact will be the HRA making the salary increase by 50% of the salary. Also the remaining DA of (100-50) 50% as January 2014 will be on this new basic and will be effectively 75% . The merger will have minor impact on other allowances also.

Whatsapp Share Button

🏠 Go to StaffCorner.com Home Page

Latest in Important News
Latest in Other News Sections
10 points on the NPS Tier II income tax saver scheme: 🕑 20 Aug,20 3:17p.m.
Interest on PPF and other small savings schemes slashed 🕑 01 Apr,20 1:17a.m.
CERT-In advises OnePlus users to alter passwords 🕑 27 Nov,19 1p.m.
Five new NPS rules you should be aware 🕑 06 Aug,19 1:09p.m.
RBI cuts repo rates to 6.25. Loans set to get cheaper 🕑 04 Apr,19 12:42p.m.
Sree Chitra Tirunal Institute develops intravenous cancer drug 🕑 26 Mar,19 9:29p.m.
CPAO FAQ For the Beneficiaries Of NPS- Additional Relief Scheme 🕑 13 Mar,19 11:06p.m.
'One Nation One Card' mobility card launched 🕑 05 Mar,19 1:47p.m.
PFRDA working on minimum assured returns for NPS subscribers 🕑 24 Feb,19 1:58p.m.
EPFO's 8.65% interest rate for FY19 is actually equivalent to 13.5%. 🕑 24 Feb,19 11a.m.