Dear Abbas,
It is really interesting and thankful to you for your interest in sharing your knowledge.
I need some more guidance related to the above discussion:
For Organisation Settlement falls due on 01-06-2008 and as per Government 50% of Basic as on 01-01-2007 should be given separately as Dearness pay which shall be taken in to account for all other eligible allowance.
Now take a example: Employee X is having BASIC of Rs.14,300 as of 01-01-2007(before DA merger)
His DA existing is say approximately Rs.6200/
If we apply the DA merger circular from Government
50% Basic is Rs.7150/- which should be shown as Dearness Pay.
next part comes so arrived Dearness Pay i.e. Rs.7150 should be deducted from paid DA i.e. 6200/- and remaining part should be should be shown as DA in the same manner in the subsequent months from the DA amount paid.
Since DP is more than the DA paid what should be the solution. whether the quantum should be shown as DP as per Govt.Directive and as and when DA crosses this quantum should be debitted as per the GO.
what is the acceptable interpretation.
Then what DA part should be merged with basic as on 01-06-2008 as the LTS fitment methodology.
Please guide.
R.G.Raja
9176839058 chennai
From India, Madras
It is really interesting and thankful to you for your interest in sharing your knowledge.
I need some more guidance related to the above discussion:
For Organisation Settlement falls due on 01-06-2008 and as per Government 50% of Basic as on 01-01-2007 should be given separately as Dearness pay which shall be taken in to account for all other eligible allowance.
Now take a example: Employee X is having BASIC of Rs.14,300 as of 01-01-2007(before DA merger)
His DA existing is say approximately Rs.6200/
If we apply the DA merger circular from Government
50% Basic is Rs.7150/- which should be shown as Dearness Pay.
next part comes so arrived Dearness Pay i.e. Rs.7150 should be deducted from paid DA i.e. 6200/- and remaining part should be should be shown as DA in the same manner in the subsequent months from the DA amount paid.
Since DP is more than the DA paid what should be the solution. whether the quantum should be shown as DP as per Govt.Directive and as and when DA crosses this quantum should be debitted as per the GO.
what is the acceptable interpretation.
Then what DA part should be merged with basic as on 01-06-2008 as the LTS fitment methodology.
Please guide.
R.G.Raja
9176839058 chennai
From India, Madras
Dear Sri R.G.Raja,
Normally DA will be merged with basic in connection with the wage revision. Full DA as on due date on which the wage revison has to be effective will be merged with the basic. This will be added with the fitment benefit (for eg. 30% of basic+DA) and will arrive the corresponding revised scale.
For most of the PSUs wage revision is due on 1.12007. The DA on the said date is 68.8%. When the wage revision delayed by one year, the Department of Public Enterprises has issued a circular to grant 50% DA merger (out of the 68.8%) as an iterim relief (IR) which is known as Dearness Payment (DP). Balance DA on 1.1.2007 will be 68.8-50 = 18.8%. This is applicable on both basic and DP. i.e effectively balance DA will be 18.8%x100%+18.8%x50% = 18.8+9.4 = 28.2%. On all further increases DA will additionally added up by 50%. But it is only a temporary adjustmet till the wage revision is finalised. Criteria for wage revision is furnished in the first paragraph.
Out of the above, the second clause is applicable for the wage revision due on 1.1.2007 only. On the said date DA is more than 50%. For a lesser DA it is not practical to merge. Also it is not incompliance with the DPE guidelines.
Abbas.P.S
From India, Bangalore
517Normally DA will be merged with basic in connection with the wage revision. Full DA as on due date on which the wage revison has to be effective will be merged with the basic. This will be added with the fitment benefit (for eg. 30% of basic+DA) and will arrive the corresponding revised scale.
For most of the PSUs wage revision is due on 1.12007. The DA on the said date is 68.8%. When the wage revision delayed by one year, the Department of Public Enterprises has issued a circular to grant 50% DA merger (out of the 68.8%) as an iterim relief (IR) which is known as Dearness Payment (DP). Balance DA on 1.1.2007 will be 68.8-50 = 18.8%. This is applicable on both basic and DP. i.e effectively balance DA will be 18.8%x100%+18.8%x50% = 18.8+9.4 = 28.2%. On all further increases DA will additionally added up by 50%. But it is only a temporary adjustmet till the wage revision is finalised. Criteria for wage revision is furnished in the first paragraph.
Out of the above, the second clause is applicable for the wage revision due on 1.1.2007 only. On the said date DA is more than 50%. For a lesser DA it is not practical to merge. Also it is not incompliance with the DPE guidelines.
Abbas.P.S
From India, Bangalore
Dear friends,
As you know the Industrial DA from 01.10.2011 onwards is 52% for 1.1.2007 scale and 156.6% for 1.1.1997 scale.
Now the projected figure from 01.01.2012 onwards is 56.5% (Diff. 4.5%) for 1.1.2007 scales and 164.2% (Diff. 7.6%) for 1.1.1997 scale.
Note: This is based on the AICPI upto 30.10.2011 published on 30.11.2011. Result of one more month viz. Nov 2011 has to come for the final figure.
Abbas.P.S
From India, Bangalore
As you know the Industrial DA from 01.10.2011 onwards is 52% for 1.1.2007 scale and 156.6% for 1.1.1997 scale.
Now the projected figure from 01.01.2012 onwards is 56.5% (Diff. 4.5%) for 1.1.2007 scales and 164.2% (Diff. 7.6%) for 1.1.1997 scale.
Note: This is based on the AICPI upto 30.10.2011 published on 30.11.2011. Result of one more month viz. Nov 2011 has to come for the final figure.
Abbas.P.S
From India, Bangalore
Dear Abbasji,
Thank you for your current DA updates....Knowledge updation will not take place without innate thirst for knowledge....but sharing of knowledge further expands your boundaries more..without limitedness....Once again thank you for your support to all the citehr'ians.....
Asok kumar.R,
From India, Bangalore
Thank you for your current DA updates....Knowledge updation will not take place without innate thirst for knowledge....but sharing of knowledge further expands your boundaries more..without limitedness....Once again thank you for your support to all the citehr'ians.....
Asok kumar.R,
From India, Bangalore
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