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
Total	26,200

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 Pay	5,000
Dearness Allowance (50%)	7,500
HRA	4,500
Transport Allowance ( 1600+ 800)	2,400
Total	29,400
Total Hike in Pay (29400 - 26200)	3,200
% of Hike is	12%

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.

[ Solurce : http://7thpaycommissionupdates.blogspot.in/ ]