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Thursday, March 13, 2014

Should the GRADE PAY STRUCTURE continue in the 7th CPC too?

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Should the GRADE PAY STRUCTURE continue in the 7th CPC too?

Once every 10 years, the Central Government revises the pay grades of its employees. It is common knowledge that the Cabinet had ordered the formation of the 7th CPC (CENTRAL PAY COMMISSION) and has also given its approval to the TERMS OF REFERENCE. 

The Central Government has, until now, constituted six CPCs. The 6th CPC has the distinction of having introduced the GRADE PAY STRUCTURE. Until then, there was only the PAY SCALE. It was the 6th CPC that changed it to PAY BAND, GRADE PAY and PAY IN THE PAY BAND. It was then said that the reconstitution was made to reduce the number of categories in the PAY SCALE. They also explained how GRADE PAY was calculated. 

Central Civil Service (Joining Time) Amendment Rules, 1989

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The Central Civil Service (Joining Time) Amendment Rules, 1989 - Dopt Order

New Delhi, the 10th March, 1989 

G.S.R. 197. — In exercise of the powers conferred by the proviso to article 309 read with clause (5) of article 148 of the constitution and after consultation with the Comptroller and Auditor General of India in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rules further to amend the Central Civil Services (Joining Time) Rules, 1979, namely :- 

Expected Dearness Allowance from July 14

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EXPECTED DEARNESS ALLOWANCE FROM JULY 2014

This is the first thing that all Central and State Government employees alike would eagerly like to know!

We are the first to calculate and write about ‘Expected DA’. We have been meticulously doing this task for the past five years. Without fail, we publish all the relevant information pertaining to DA, which is given twice every year (January 1, and July 1). It is our practice to calculate these numbers on the basis of certain indicators. 

Dearness Allowance is calculated entirely on the basis of price rise and inflation. Of utmost importance for the calculation is the AICPIN (All India Consumer Price Index). Labour Bureau, a Government agency releases these figures each month. 

The Consumer Price Index (Industrial Workers) Base 2001 =100 is calculated based on the prices of 24 crucial items. They are also called “Fixed Basket of Goods.” They take into account the change in retail prices of these items. 

Three most important constituents of the CPI-IW are the centre specific weighting diagrams, the retail price data and the house rent data. 78 towns are chosen and the list is formulated from the information gathered from these places. Each month’s AICPIN is released in the following month. 

After 01.01.2006, according to the formula recommended by the 6th CPC, an approximate dearness Allowance for the month is calculated. At the end of June and December, the precise Dearness Allowance is calculated.

In order to calculate this year’s second instalment of Additional Dearness Allowance, AICPIN points of six months are required. As of now, the AICPIN of only one month has been released. In these circumstances, it wouldn’t be right to make predictions. Actually, it would be wrong. 

Expected DA from 1.7.2014 - DA Table monthly wise...

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