JCM Staff side pressurizing Govt to change formula for Dearness Allowance

| October 21, 2016

DA from July 2016 – Staff Side JCM writes to Govt for grant Dearness Allowance due from July 2016 after amending existing DA Calculation formula as a result of revision of pay after 7th pay commission implementation

Shiva Gopal Mishra
Secretary

Ph.: 23382286
National Council(Staff Side)
13-C, Ferozshah Road, New Delhi -110001
E Mail : nc.jcrn.np@gmail.com

No.NC.JCM-2016/Fin.(DA)

The Secretary,
Govt of India
Ministry of Finance,
Department of Expenditure,
North Block, New Delhi 110001

 

October 18, 2016

Subject: Grant of Dearness Allowance With effect from 1.7.2016 — Reg.

Dear Sir

We refer to our letter of even No.NC/JCM/2016 dated September 6, 2016 wherein we have requested for an amendment to the existing formula of DA computation, necessitated by the revision of Pay with effect from 01.01.2016. We hope that you must have caused the matter to be examined.

We are prepared to call on the officer concerned, if there is any ambiguity in our contention. Since the normal date for issuance of DA order was in September, we shall he grateful if a decision in the matter is taken urgently.

Thanking you,

 

Yours faithfully,
(Shiva Gopal Mishra)
Secretary

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)

Category: NC JCM, News, Seventh Pay Commission

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