Good News For PSU Executives As Government Unfreezes Dearness Allowance

Diwali time comes in with good news for the Executive Class of Public Sector Undertakings. The central government today announced unfreezing of their Dearness Allowance (DA) which had been stopped citing Covid reasons on July 1, 2020. The Executives of PSU had been crying foul over the issue. The Executive Class had been saying that DA freeze was implemented only in respect of executives and non-unionized supervisors and not made applicable to workmen as a result of which executives were given an unfair and unequal treatment and were paid lesser DA as compared to workmen who report to them. They said that this was violative of rights of equality and natural justice.

Sources within PSUs have welcomed this move but they say that they are also entitled to arrears for the period they were denied Dearness Allowance and this will be their next demand to the Government of India.

Shri Mukul Kumar, Convenor of Federation of Oil PSU Officers (FOPO) told www.indianpsu.com “FOPO is thankful to the DPE for correcting, vide OM dated 27.10.2021, the error in the notification dated 2.8.2021 regarding DA payable to Executives of CPSEs. However, the anomaly in applicable DA rates between Executives of CPSEs & workmen due to DA freeze needs to be also corrected, since the same is violative of rights of equality and natural justice. Meeting of Office bearers of FOPO with DPE is scheduled on 29th October, 2021 wherein all these discriminatory issues causing demotivation among the executives & thereby impeding the growth of their companies are proposed to be discussed”.

The office order to this effect is given below for the benefit of the viewers of www.indianpsu.com –

OFFICE MEMORANDUM

Subject:- Board level and below Board level posts including Non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 01.01.2017 –

Payment of IDA at revised rates-regarding.

The undersigned is directed to refer to the para 7 and Annexure-lll (B) of DPE’s OM dated 03.08.2017 wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated. The rates of DA payable to the executives and non-unionized supervisors of CPSEs are as follows:-

(a) DA Rate 24.7% due and payable from 01.07.2021

(b) DA Rate 27.2% payable from 01.10.2021

2. Accordingly, the rate of DA 23.2% notified vide OM No. W-02/003912017-GL-lll2l, dated O2.O8,2O21, which was taken based on the rate due from 01 .04.2021, has been superseded by enhanced DA rate of 24.7% payable from 01.07.2021.
3. The above rates of DA i.e. 24.7% and 27.2% would be applicable in the case of IDA employees who have been allowed revised pay scales (2017) as per DPE O.Ms. dated 03.08.2017, 04.08.2017 & 07.09.2017.
4. All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.
5. This issues with the approval of the Competent Authority.