FM urged to consider merging 50% DA with basic pay | business | Hindustan Times
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FM urged to consider merging 50% DA with basic pay

business Updated: May 07, 2007 19:55 IST
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The Standing Conference of Public Enterprises (SCOPE) has urged Finance Minister P Chidambaram to consider merging 50 per cent of the dearness allowance (DA) of central public sector employees with their basic pay, as part of the Industrial Dearness Allowance (IDA) pattern.

Sarthak Behuria, chairman, SCOPE, and SM Dewan, its director general met Finance Minister P Chidambaram on Monday and requested him to consider the request. They also stressed the need for early increase in the emoluments of employees.

Behuria said there was growing resentment and a strong demand from employees for more money. With each DA hike announcement by the government, the gap in emoluments is widening progressively between employees drawing salary on IDA pattern as compared to employees drawing salary on central dearness allowance (CDA) pattern.

The dearness pay should be treated as basic pay for various allowances, contribution to GPF, CPF and retirement benefits as has been done in case of employees of Central Government and on PSEs of CDA pattern pay scales, he said and added that consequentionally, ceiling of pay and other benefits for PSEs employees, IDA scales should be revised to a maximum of 50 per cent of the sum of basic pay and dearness pay from the effective date January 1, 2005.

He also urged that since the final recommendation of the Pay Committee shall take sometime, the merger of DA might be announced as an Interim measure so that public enterprises do not lose their talents.

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