Hope on Centre for allocation of funds in Budget for 7th Pay Commission
Modi Government can make a big declaration regarding the 7th Pay Commission in the general budget meeting.
There are chances for the Central Government employees to receive an additional 6% Dearness Allowance from 1.1.2015. So forth, the total DA for the Central Government Employees will account to 113%.
The DA is in relation with the All India Consumer price Index (Industrial Workers), which is called AICPIN. The Government will consider the accounts for the last 12 months of the CPI-IW and fix the DA.
DA will be calculated based on the formula proposed in the sixth pay commission. The Dearness Allowance calculation for the Industrial Workers will be based on the average of the Consumer Index for the last 12 months.
The Consumer Price Index (Industrial Workers) for the last four months i.e., August to November, and also for December has been constant on the number 253.
The Consumer Price Index for the other months i.e., January, February, March, April, May, June and July was 237, 238, 239, 242, 244, 246 and 252 respectively.
The Retail Inflation rate of the Industrial workers between 01 January 2014 and 31 December 2014 will be taken into account for the final decision. Thus the average Inflation this year is around 6.3%.
Due to the continuous decline in Inflation, it doesn’t seem that the Inflation rate would cross 6%. Here it is essential to specify that the Dearness Allowance is increased twice every year.
There is also a provision, that if the Dearness Allowance crosses 50%, it has to be merged with the basic pay. All Central Government Employees Federations are continuously pressurising the government to merge the Dearness Allowance with the basic pay.
But there is no response either from the government or the Seventh Pay commission on this issue. The government also doesn’t seem to be in a mood to merge the DA with the basic pay.
If it so happens, then this would not be a good news for the employees. Now the central government employees have placed their hopes on the budget scheduled this February. The central government employees are hoping that the financial minister will bring them good days.
Here, the major federations have also started pressurising the government to merge the Dearness Allowance with the basic pay. All employees’ associations are also pressurising the government that in this budget, provisions should be made for money to implement the terms of the seventh pay commission. The trade union leaders have a firm belief that there would be a large declaration during this budget meeting.
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Dear Comrades ,
In private Companies , like IT/ITES, the pay of the employees are increased every year by 8% to 14%. Even if we take 10% on the average increase every year, with cumulative effect, they normally get an increase of about 140%. 5th & 6th pay Commissions ordered an increase of 40% .The Govt employees are to kept mum for 10 years till every pay commissions are constituted are to recommend only 40%.
In order to give better benefits to Govt Employees, the 7th Pay Commission and the Govt have to view the issue taking into account of the prevailing trend of increase offered b y IT/ITES Companies and other Public Sector Undertakings. Normally in all Govt Undertakings/Banks,etc wage revision is ordered once in 5 years, whereas Pay Commission recommends revision only once in 10 years. So the Pay Commissions has to recommend for revision of pay & nallowance of central Govt employees once in 5 years.