NC JCM-DoPT Meeting: DA Merger Before 8th CPC, Pay Level Merger Among Key Demands in

National Council of Joint Consultative Machinery Demands Merger of DA with Basic Pay Before 8th Pay Commission Implementation

In a crucial meeting convened by the Department of Personnel and Training (DoPT), the National Council of Joint Consultative Machinery (NC-JCM) strongly advocated for the merger of Dearness Allowance (DA) with the basic salaries of central government employees before the implementation of the 8th Pay Commission.

Key Discussions and Demands

The NC-JCM, an official body comprising bureaucrats and employee union leaders, held discussions with DoPT Secretary Rachna Shah on Monday. During the meeting, the council highlighted that DA, which is meant to offset inflationary effects, has already surpassed 50%.

Following the most recent revision in October, DA has risen to 53%. Shiv Gopal Mishra, NC-JCM Secretary (Staff Side) and Chief of the All India Railwaymen's Federation (AIRF), emphasized the urgency of merging DA with the basic salary to provide relief to employees. Speaking to NDTV Profit on Tuesday, he stated, “The merger should be done immediately.”

Demand for Pensioners

In addition to the DA merger, the NC-JCM staff side has also demanded that Dearness Relief (DR) be merged with the basic pension. Similar to DA, DR currently stands at 53% of the basic pension.

Precedents and Policy Shifts

Historically, under the 5th Pay Commission (1996-2006), the government followed the practice of merging DA with basic pay once it crossed the 50% mark. In line with this norm, DA was integrated with basic salary in 2004.

However, this practice was discontinued by the 6th Pay Commission (2006-2016). Although the 7th Pay Commission had proposed its restoration, the government did not approve the recommendation at that time.

Merger of Unviable Pay Scales

Another significant issue raised during the meeting was the need to merge unviable pay scales. Mishra pointed out that the NC-JCM staff side has proposed merging:

• Pay Level 1 with Level 2

• Level 3 with Level 4

• Level 5 with Level 6

Mishra explained that this step is necessary to prevent pay stagnation, which adversely affects the Modified Assured Career Progression (MACP) Scheme.

DoPT Secretary’s Response

When asked about the response from DoPT Secretary Rachna Shah, Mishra stated that the meeting was held as a consultation regarding the terms of reference for the 8th Pay Commission. “The DoPT Secretary took note of our concerns, and we expect her to present them before the Finance Ministry,” he added.

Why Merging DA with Basic Pay is Crucial

The integration of DA with basic pay would significantly boost the basic salaries of employees, leading to a higher salary hike when the 8th Pay Commission is implemented.

Fitment Factor Impact

Pay commissions typically recommend a fitment factor, which is a multiplier used to determine the increase in basic salaries. The 7th Pay Commission had proposed a fitment factor of 2.57, which raised the minimum salary in 2016 from Rs 7,000 to Rs 18,000 (Rs 7,000 × 2.57).

If the existing pay structure remains unchanged, the fitment factor recommended by the 8th Pay Commission will be applied to Rs 18,000 to determine the new minimum salary.

However, if DA is merged with basic pay before the 8th Pay Commission’s implementation, the basic salary will increase significantly. Given that DA currently stands at 53%, merging it with basic pay would raise the minimum entry-level salary to Rs 27,540.

This means that when the 8th Pay Commission recommends a fitment factor, it will be applied to the new base salary of Rs 27,540, rather than Rs 18,000, leading to substantial salary revisions.

Expectations from the 8th Pay Commission

In previous discussions with NDTV Profit, representatives of employee forums expressed their anticipation that the 8th Pay Commission will recommend merging DA with basic pay once it surpasses 50%.

“This was proposed by the 7th Pay Commission but was not part of the final recommendations approved by the government. However, we expect the 8th Pay Commission to include this in its report,” stated an official from the Confederation of Central Government Employees and Workers.

Mishra echoed similar sentiments, affirming, “We will certainly raise this demand before the 8th Pay Commission.”

Formation of the 8th Pay Commission

Last month, the Union Cabinet approved the formation of the 8th Pay Commission. When questioned about the appointment of its chairman and members, the Finance Ministry informed Parliament on February 4 that the decision would be made “in due course.”

The demand for the merger of DA with basic pay remains a crucial issue for central government employees, with significant implications for salary hikes and pension adjustments. With the 8th Pay Commission on the horizon, employees are hopeful that long-standing demands will finally be addressed.