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English Release 23-September 2014
Date Month Year
  • President's Secretariat
  • President of India’s message on the eve of Republic Day of Trinidad and Tobago
  • President congratulates medal winners in Asian games 2014
  • Prime Minister's Office
  • PM greets the people of Saudi Arabia on their National Day
  • PM greets the nation on Mahalaya
  • J&K CM calls on PM
  • Min of Agriculture
  • Shri Radha Mohan Singh Urges Canada to Invest in Indian Agro Infrastructure
  • Min of Civil Aviation
  • AAI Signs MoU with US Agency
  • AAI Markets Indian Airports at World Route Forum
  • Min of Culture
  • SAARC Culture Ministers’ Meet to Chart out 2014-17 Action Plan
  • Min of Environment and Forests
  • Text of the Intervention made by Minister for Environment, Forests and Climate Change Shri Prakash Javadekar during Major Economies Forum meeting at New York on 22nd September, 2014
  • Min of Health and Family Welfare
  • J&K health infrastructure needs urgent revival
  • Min of Mines
  • Mineral Production during July 2014
  • Min of Petroleum & Natural Gas
  • Global crude oil price of Indian Basket was US$ 95.43 per bbl on 22.09.2014
  • Ministry of Railways
  • Railways Lifts both Men & Women Championships at Senior National Powerlifting Championship held at Goa
  • Min of Skill Development, Entrepreneurship, Youth Affairs and Sports
  • Asian Games 2014
  • Min of Textiles
  • Santosh Kumar Gangwar to Chair Annual Conference of State Textiles Ministers Tomorrow
  • Min of Urban Development
  • Ideas, Innovation, Investments and Implementation key to ‘Reinventing the India Story’ says Shri M.Venkaiah Naidu
  • Planning Commission
  • Aadhaar has enrolled one –fourth of UP’s residents, Crosses 5 Crore mark

Previous Date

 
Ministry of Heavy Industries & Public Enterprises30-January, 2008 15:48 IST
Government permits merger of 50% DA with basic pay for CPSE employees
Consequent to the recommendations of the 2nd Pay Revision Committee headed by Justice M. Jagannadha Rao for executives of Central Public Sector Enterprises (CPSEs), the Government has permitted merger of 50% of Dearness Allowance with Basic Pay to the employees of CPSEs following 1997 IDA pattern of scales of pay. The Board of Directors of respective CPSEs can decide on the merger of DA with the approval of their Administrative Ministry. The merger of 50% DA will be subject to the following conditions:

(i) 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 for employees of CPSEs may be merged w.e.f. 1.1.2007 with the basic pay of the employees and shown distinctly as Dearness Pay (DP), which would be counted for purposes like payment of allowances, transfer grant, retirement benefits, contribution to Contributory Provident Fund, Licence Fee, various advances etc.

(ii) The merger of IDA equal to 50% of the existing basic pay may be allowed to employees of CPSEs following IDA pattern of pay scales at 1997 level that are not loss making and are in a position to absorb the additional expenditure on account of merger of 50% of IDA with basic pay from their own resources without any budgetary support from the Government. The budgetary support would not be available for this purpose.

(iii) Similar benefits of merger of IDA equal to 50% of the existing basic pay as at sub-para (i) above may also be extended to the employees in the IDA pattern pay scales in the Food Corporation of India.

(iv) The entitlements for LTC, TA/DA while on tour and transfer would, however, continue to be governed on the basic pay alone without taking Dearness Pay into account.

(v) Portion of Dearness Allowance converted into Dearness Pay would be deducted from the existing rate of Dearness Allowance while computing quantum of Dearness Allowance.

(vi) The Board of Directors of each CPSE would consider the proposal for 50% merger 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.

There are 247 CPSEs in the country as on 31st March, 2007. In total, there are about 16.3 lakh employees in 247 CPSEs as on 31.3.2007. Approximately, 96.4% of the said workforce belong to IDA pattern scales of pay. This decision will benefit most of these employees who are on 1997 IDA scales of pay. With this, one of the major demands of employees of CPSEs has been met by the Government.

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MG/SR
(Release ID :35004)

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