Seventh Pay Commission & Merger of DA News by Paycommissionupdate

As per an article “No merger of D.A. but seventh pay commission likely this year” published by reputed website for Central Government Employees [http://paycommissionupdate.blogspot.in], the setting up of seventh pay commission likely this year.  In view of the late decision on grant of dearness allowance to central government employees and pensioner for the month of January, 2013 by Govt. it is easy to accept that Govt. will not consider merger of dearness allowance in basic pay and it is hard to accept that Govt may set up the seventh pay commission in this year.  But in view of suggestions by Union Minister Vijay Maken [click here to view] and trade/employee union demands [click here to view] Govt. may set up the 7th CPC.  It is also evident that Govt had already denied the demand of merger of DA [click here to view] as well as in last session of parliament Govt. had also submitted that no proposal of setting up of seventh pay commission [click here to view].  In view 13th Finance Commission recommendation [click here to view] “Structural shocks such as arrears arising out of Pay Commission awards should be avoided by making the pay award commence from the date on which it is accepted.” and payment of arrears of One Rank One Pension [click here to view] from date of acceptance i.e. 24th Sep, 2012 not from 01.01.2006 or 01.09.2008, the early setup of seventh pay commission is necessary to avoid the loss of increased pay & allowance.  In Sixth pay commission the arrears of allowances was not given.  In other words the early setup of seventh pay commission will also increase the future financial liabilities of government.

Read below the article published by paycommissionupdate:-

According to our sources in New Delhi, there is no chance of any merger of Dearness Allowance with basic pay as demanded by the associations. But the Government is considering the formation of seventh pay commission. 

The seventh CPC is scheduled to be effective from 1.1.2016 and if it is formed this year, there will be ample time to finalize it’s recommendations. Moreover, if it is not effective from an earlier date, the Govt. will be free from any burden of paying arrears, which may adversely effect the fiscal situation. Most significantly, in the eve of general election, the Govt. may spread a “feel good” situation among the employees without having to pay an extra penny from the exchequer. In the other hand merging D.A. with basic pay will lead to a considerable expense and as there is definite negative recommendation of sixth CPC in this respect, Govt. can easily deny this demand. After formation of seventh CPC, if the ruling party fails to come back in the corridors of power, the entire liability will have to be borne by the new Govt. So, it’s a win win situation of the ruling party and most likely, it will be announced in the later half of the year. 

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