MERGER 50% OF DEARNESS
ALLOWANCE WITH BASIC PAY TO THE EMPLOYEES OF CENTRAL PUBLIC SECTOR
ENTERPRISES (CPSES) FOLLOWING 1997 INDUSTRIAL DEARNESS ALLOWANCE (IDA)
PATTERN OF SCALES OF PAY |
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15:0 IST
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The Union Cabinet today gave
its approval to the following :
(i) For merging a portion of IDA equal to 50% of the existing basic pay
in respect of employees in CPSEs following IDA pattern of pay scales at
1997 levels in case of Board level/below board level executives and
non-unionized supervisors, with the basic pay of the employees w.e.from
1.1.2007 and showing distinctly as Dearness Pay (DP) which would be
counted for purposes like payment of allowances, transfer grant,
retirement benefits, contribution to Contributory Provident Fund,
various, Licence fee, various advances etc. In the case of unionised
workmen, the Board may take a decision after negotiation with the union.
(ii) For allowing the above benefit of merger of DIA to CPSEs that are
not loss making and are in a position to absorb the additional
expenditure on account of said merger of IDA without any budgetary
support from the Government. No budgetary support would be provided for
this purpose.
(iii) Extension of (i) above to the IDA pattern to employees of Food
Corporation of India,
(iv) Determination of the entitlements for LTC, TA/DA while on tour and
trasfer etc. on the basic pay alone without taking into account Dearness
Pay,
(v) Deducting the DA converted into Dearness Pay from the existing rate
of DA while computing quantum of Dearness/Allowance,
(vi) The Board of Directors of each CPSE would consider the proposal for
50% merer of DA with Basic Pay for executives and workmen keeping in
mind the capacity of the company to pay and submit a proposal to the
Administrative Ministry which will approve the proposal with the
concurrence of its Financial Advisor.
This would benefit the employees following IDA pattern of pay scales in
CPSEs, which are in a position to absorb the additional expenditure
without budgetary support.
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SH/SKS |
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