Cabinet okays 50 pc DA merger with basic pay

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New Delhi, Jan 30 (UNI) The Cabinet today approved the 50 per cent merger of Dearness Allowance (DA) with the basic pay to the employees of Central Public Sector Enterprises (CPSEs), following 1997 Industrial Dearness Allowance (IDA) pattern of pay scales.

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, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the Cabinet meeting.

He said the Board of Directors of each CPSE will consider the proposal for 50 per cent merger of DA with the basic pay for executives and workers 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.

The Cabinet move would help in purposes like payment of allowances, transfer grant, retirement benefits, contribution to contributory provident fund, various licence fee and advances.

''In the case of unionised workmen, the Board may take a decision after negotiations with the union,'' Mr Dasmunsi said.

For allowing the benefit of merger to CPSEs that are not loss-making and are in a position to absorb the additional expenditure on acccount of the said merger of DA without any budgetary support from the government, no support would be provided for this purpose, he said.

The Cabinet also approved the extension of the above IDA pattern to eomployees of Food Corporation of India.

The entitlements for LTC, TA/DA while on tour and transfer on the basic pay alone wil be determiend without taking into account the dearness pay, the Minister said.


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