INTUC Resolution on Merger of 50% DA with Pay

Merger of 50% DA With Pay

The 30th Plenary Session of Indian National Trade Union Congress INTUC  was held in Raipur from 06.09.2013 to 09.09.2013.  There are 4 Resolutions, which are considered to be very important are adopted in this Conference.  One of the four main resolution is Merger of 50% DA with Pay for central government employees. So the INTUC urges the central government to consider the demand  and accord sanction for merging 50% DA with pay. The Resolution On Merger Of 50% DA With Pay which has been adopted in 30th Plenary Session of  INTUC held in Raipur from 6-9-2013 to 9-9-2013 is given below

The Wage structure revision for Central Government employees had been enquired into by the successive pay Commission appointed by the Government of India during the past decades and gave their reports. The Government had considered the reports and decided for implementation with certain changes and improvements.

The previous pay Commissions (3rd,4th,5thand 6th ) have ,by and large, covered the aspects of the principle of wage determination . But however the job contents, remuneration commensuration with the nature of duties and responsibilities have not been taken into consideration by the pay Commissions while determining the revised pay structure, consequently the railway men have been put into disadvantage.

The 5th CPC had recommended that the DA must be merged with pay and treated as pay for computing all allowance as and when the percentage of dearness compensation exceeds 50%. Accordingly even before the setting up of 6th CPC, the DA of 50% was merged with pay.

Presently, the dearness compensation is 80% as on 1st January, 2013, while the DA had crossed 50% of pay as on 1st January, 2011.The demand for merger of DA to partially compensate the erosion in the real wages was first mooted by the Gadgil Committee in the 2nd pay Commission period. The 3rd CPC had recommended such merger when the cost of living Index crosses over 272 points i.e. 72 points over and above the base index adopted for the pay revision. In other words, the recommendation of the 3rd CPC was to merge the DA when it crossed 36%. The Government in the national Council JCM at the time of negotiation had initially agreed to merge 60% DA and later the whole of the DA before the 4th CPC was set up. The 5th CPC had merged 98% of DA with pay.

As the DA already stood at 80% of Pay and another installment is expected to be granted w.e.f. July, 2013 which may cross 90%,it is necessary that the Government takes steps to merge 50%DA with pay for all purposes for the year 2013 for ensuring compensation to the erosion of value of real wage of government employees.

The Plenary Session of INTUC therefore urges upon the Government of India to consider the demand and accord sanction for merging DA component i.e. 50% of DA with pay for all purposes.