Freezing of DA till Jul 2021: Appeal for review and grant of option to credit the Additional DA to Provident Fund

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Freezing of DA till Jul 2021: Appeal for review and grant of option to credit the Additional DA to Provident Fund

Freezing of DA till Jul 2021: Appeal for review of decision and grant of option to credit the Additional DA to Provident Fund

INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329) Website http://irtsa.net
CHq. 32, Phase 6, Mohali, Chandigarh-160055.

No:IRTSA/CHQ/Memo. 2020-3

Date: 30-4-2020

Smt. Nirmala Sitharaman,
Hon’ble Minister for Finance,
Government of India,
North Block, New Delhi-110001.

Respected Madam,

Subject: Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at the current rates till July 2021

– Appeal for review of decision; And Grant of option to credit the Additional DA to Provident Fund

Ref: Ministry of Finance, Department of Expenditure OM No.1/1/2020-E-II (B), dated 23-04- 2020

1) Indian Railways Technical Supervisors Association (IRTSA) extends its fullest support and cooperation to the Government of India in its all-out effort to control COVID-19 pandemic. Railway men are working on the forefront risking their lives to keep freight & parcel services operational for ensuring uninterrupted supply of essential commodities across the country. Indian Railways have taken up many special tasks to fight against COVID-19 pandemic.

2) Railways’ and other government employees and pensioners have contributed generously to PM CARES for the fight against COVID-19.

3) It is, however, very disheartening that the Government has decided, as per the order cited above, that the DA/DR is frozen and would not be revised up to July 2021; and that no arrears will be paid. This has adversely affected the morale of the employees.

View: महंगाई भत्ता रोके जाने के खिलाफ याचिका, PIL Filed for Freezing DA in Supreme Court

4) DA is a part of Pay, compensating for the erosion in the real value of the salary. DA can only be deducted either as a punitive measure or with the consent of the employees.

5) Assuming 4% additional DA & DR for each of 3 spans of six months, the total loss of employees and pensioners would be over 1.5 months of Pay & Pension and possibly even more than that, if the inflation is higher than 4 % in the next 2 spans.

6) Freezing of DA will also delay the revision of HRA rates since as per decision of the Government on 7th CPC, whenever DA crosses 25%, rates of HRA will be revised.

7) It will also cause additional heavy loss to the employees who retire between 1-1-2020 to 30-6-2021 in terms of Gratuity and Leave encashment as the DA is counted for the same.

8) We fully realize that a lot of funds are required to combat the social & economic impact of COVID. But freezing the DA & DR would be counter-productive, as freezing this huge amount would give a further blow to the market as well as to the employees and the pensioners since the amount paid as DA and DR will actually flow out to the market. This will help boost the sagging economy in post-COVID times.

9) Government had advised all private sectors to pay their employees for the lockdown period. Government, as a model employer should set an example by not making any cut in the pay & allowances of its own employees.

10) Lower and middle class employees and pensioners are hard pressed to meet their liabilities due to heavy inflation which is bound to increase in the post-COVID-19 scenario especially in respect of cost of Medicines and household requirements.

11) In the past,when funds were required for a National calamity like War, Floods or Cyclones etc., DA installments were deposited in the Provident Fund with the consent of the employees. It was never frozen as of now.

12) It is, therefore, requested that, keeping in consideration all the above aspects, the following proposals may please be considered sympathetically to avoid heart burning amongst employees and pensioners:

a) Order for freezing of Dearness Allowance and Dearness Relief may please be withdrawn.

b) Instead option may please be given to Employees for crediting of the amount of Additional DA to their Provident Fund in case of pre-1-4-2004 employees and to the Pension Fund (Tier 2) in case of those covered under the NPS.

c) Employees and pensioners may be encouraged to invest in Infrastructure Bonds etc. by increasing the ceiling limit thereof. This would provide the government with the requisite funds and the employees will not be at a loss in the long run.

Thanking you

Yours’ faithfully,

(HARCHANDAN SINGH)
General Secretary.

Copy for Information with a request to please consider and recommend our submissions:

i) Hon’ble Minister for Railways, Rail Bhawan, New Delhi – 110001

ii) Dr. Jitendra Singh, MOS PP&PG, North Block, New Delhi – 110001

iii) Cabinet Secretary, Rastrapati Bhawan, New Delhi – 110004

iv) Secretary Finance (Expenditure), North Block, New Delhi – 110001

v) Secretary Personnel, North Block, New Delhi – 110001

freezing-da-appeal-to-finance-ministerSource: IRTSA Click here to view/download the PDF

COMMENTS

WORDPRESS: 5
  • N MUKUNDAN 2 years ago

    It is the Govt policy to all. Of course always Govt employees are the prefered one . A pity that IRTSA included the pensioners for the their number a/c but not given a solution for them on the return of the freezed money as suggested to include the same in the employees PF or so. Secondly the infra structure investment suggested is a very meagure amount to consider in the same may be for top officials who are still drawing the DA. IRTSA should have touched the politicians for the same for more amount as one way from their perks,pay etc . In my opinion the amount freezed so may be claimed to be exempted in full for the Income tax calculations in the FY as a whole .This will be ideal and the reverse calculations for the amount due for the respecive FY for the income tax calculation for the administration and to the pensioners to re work or to approach auditor and the auditors fees can be avoided. IRTSA failed to look in this angle.
    I am a Rly Pensioner and is saving some amount to avoid income tax.I am fully supporting the Govt decision in this issue though it is hard to forgo the amount for sometime at this cost . Equally I am suggesting the Govt to collect more from the Politicians pay or perks for th time one sidedly..

  • Samindra Roy 2 years ago

    Hon’ble Fin Minister, apart from DA freeze why can’t you consider a graded cu in govt salaries and pensions, graded as per their salary. When millions in Pvt sector are on furlough, why can’t same be applicable to Babu’s, pensioners, at least for creamy layrr

    • Bapan 2 years ago

      Why should the Government employees be victimised in the event of any inconvenience faced by the country. Central Government employees are regular tax payer unlike the other ones I.e big business houses in the country. Central Government employees are giving their best during this lockdown period. But they are most sufferers. Big business houses’ loans have been waived and they have no contribution to the social welfare of the country. There is need to freeze the DA/DR of the Central Government’s employees if the Government retrieved the plundered money by some business houses.

  • Suman 2 years ago

    Huuuh….this Govt has no guts to impose heavy selective cess or duties from corporates like adani,ambani,to whom Govt standed like pillars to make them superrich…but they will freeze and boil middle class mostly Govt employees…so it s show the Govt through our votes…

  • SIBAPADA RAYCHAUDHURI 2 years ago

    Govt will cry never there would be smile. DA/DR is to be considered as volatile in nature so as to evaporate soon.