Friday, March 7, 2014

Can the govt servants get 30% Salary hike on account of 50% DA Merger? - An analysis

Can the govt servants get 30% Salary hike on account of 50% DA Merger? - An analysis

Can the govt servants get 30% Salary hike on account of 50% DA Merger? - An analysis

It is observed that recently Public Medias are interested to publish the news about pay hike of central government employees.

We all know the Federations of Central Government employees have been holding demonstrations and Struggles to invite the attention of govt to settle their many demands for the past few months. As a result of this Centre has accepted to settle some demands.

One of the main demands laid down before the Central Government by Federations is 50% DA Merger. A Sensational News was spread across the country that a decision on 50% DA merger will be announced in the Cabinet Meeting held last week. But, though there

was no any formal announcement in this regard, the approval of 7th CPC Terms of reference by Government made everyone to think that it will be considered sooner or later.

A Popular English daily published a tabloid news last week, in which The daily claimed that a govt official informed them ‘the govt servants will get 30% Pay Hike on account of Merger of 50% dearness Allowance with Basic Pay.’

Is that true? Let us see with an example

For example, let us consider as if a government servant is working in one of the four metropolitan cities and rendered 10 years’ of service.

His Basic Pay is (7600+2400)10,000
Dearness Allowance 100%10,000
HRA 30%3,000
Transport Allowance (1600+1600)3,200

Rs.26,200 is the maximum total emoluments of this particular Basic Pay. This will not be exceeded at any cost but there are some reasons to make these total emoluments to be lesser than this.

The salary with same basic pay after DA merger

In case the central government agrees to merge the 50% DA with basic pay, then that govt servant can expect a considerable pay hike on account of Merger of 50% DA.

After Merger of 50% DA his Pay will be as fallows

Basic Pay (7600+2400)10,000
Dearness Pay5,000
Dearness Allowance7,500
Total Hike in Pay (29400 - 26200)3,200
% of Hike is12%

How can one say that he will be getting 30% hike when he is getting only Rs.3200 in addition to his previous salary of Rs.26,200 after 50% DA merger?

Everybody fallowed the particular Daily and started writing that the Government servants will get 30% salary hike after 50% DA is merged with basic Pay. But this example clearly shows that there is no such hike and if the DA is merged with Basic Pay the increase in salary will be only from 8% to 15%

According to their entitlement the percentage of increase will vary, but no one can get 30% pay hike on account of DA merger.

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