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Friday, 8 August 2014

DA MERGE AND IT'S EFFECT DATE OF 7TH CENTRAL PAY COMMISSION, CLARIFICATION FROM STANDING COMMITTEE MEETING

STANDING COMMITTEE MEETING HELD ON 07.05.2014

Item No 1, 2 & 3 : Terms of Reference of the 7th CPC, date of effect of the recommendations of the 7th CPC from 01.01.2011 and Merger of DA with pay

10. Secretary (Expenditure) expressed his condolences at the demise of Sh Purohit. He then mentioned that the issue of the Terms of Reference (TOR) of the 7th CPC was handled with great sensitivity and it was not correct to say that the views of the Staff Side have not been taken into account. Almost 90% of what Staff Side had suggested for the TOR for the 7th CPC was taken very seriously and only in the case of Grameen Dak Sevak (GDS) and Interim Relief there were certain issues due to which these could not be included in the TOR.

In regard to the date of effect of the recommendations, this is also one of the ToR of the 7th CPC. The date of effect of the recommendations of a Pay Commission is suggested by the Commission itself. This was the practice followed in respect of the previous central pay commissions. Therefore, the date of effect of the recommendations of the 7th CPC cannot be suggested upfront, since this would be recommended by the 7th CPC itself having regard to various factors that they may take into account.

In regard to the Interim Relief, he mentioned that this is normally given when there is delay in constitution of the Central Pay Commission. Since the 7th CPC has been set up well on time, question of interim relief was not considered necessary.

11. On the issue of merger of DA with pay he pointed out that the 6th CPC in its Report had specifically recommended against it.

As to the inclusion of a representative of labour in the composition of the 7th CPC is concerned, the composition of the 7th CPC was broadly in line with the composition of the previous three Central Pay Commissions and Government did not want to make it unwieldy.

So far as the issue relating to Pensioners is concerned, the same has been amply included in para (f) of the ToR. As regards the pay anomalies, the same would be considered by the 7th Central Pay Commission as part of its overall ToR. Since the terms of reference enable the CPC to send interim report, Secretary (Expenditure) suggested that the Staff Side might approach the 7th CPC for a report on Interim Relief and Merger of Dearness Allowance.

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