Understanding 50% DA for PSEs: How Will It Be Treated in the Next Agreement?

Re: 50% DA applicable to the PSE's whose agreement is in force. If so, how is that 50% of the DA treated when the next agreement is open? The agreement is in force from 1.1.2003 to 31.12.2012. How will this 50% DA be treated on 01.01.2013? Whether the 78.2% of DA for the fitment purpose is applicable now or from 01.01.2013. Please clarify the above. If 50% is applicable, what are the base points for the purpose of calculating the DA percentage.

Narayan
Vignyan- Tarikere

Re: 50% DA applicable to the PSE's whose agreement is in force. If so, how is that 50% of the DA treated when the next agreement is open? The agreement is in force from 1.1.2003 to 31.12.2012. How will this 50% DA be treated on 01.01.2013? Whether the 78.2% of DA for the fitment purpose is applicable now or from 01.01.2013, please clarify the above. If 50% is applicable, what are the base points for the purpose of calculation of DA percentage.

Narayan
Vignyan-Tarikere

Re: 50% DA applicable to the PSE's whose agreement is in force. If so, how is that 50% of the DA treated when the next agreement is open?

Your questions are:

1. How is 50% DA treated for the period 1.1.2003 to 31.12.2012?
Answer: The 50% DA merger is applicable for the period 1.1.1997 to 31.12.2006.

2. On 1.1.2013, will the fitment be based on 78.2% DA or not?
Regarding the period 1.1.1997 to 31.12.2006, the DA as of 1.1.2007 is 68.8%. After the 50% DA merger, the effect will be 50% + ((68.8% - 50%) x 150%) = 78.2%. For the period 1.1.2003 to 31.12.2012, all figures may vary. Therefore, do not compare the DA or effective DA on 1.1.2013 with 78.2%.

Abbas.P.S

I agree with abbasiti's comments - How the D.A. shall be treated on 01.01.13 should not be a basis of conjectures as of today. Whenever new scales are proposed and implemented, at that point in time, the treatment of the existing basic pay plus all prevailing D.A. applicable is taken into consideration. Generally, all such allowances are merged, and fitment is done at the appropriate stage in the new pay scale. The only matter that remains to be determined is the Date of Next Increment (DNI) to avoid any pay anomaly. Thereafter, any other pay anomalies with respect to a junior are considered on a case-by-case basis, and adjustments are made accordingly by altering the number of increments or shifting the DNI. Warm regards.