NCOA Lodges Protest Against Restoration Of DA With A Quarter Lag

The apex body of executives of Public Sector Undertakings asks government to look into this matter urgently

The National Confederation of Officers Associations (NCOA), an Apex Body of Officers of Central Public Sector Undertakings, has lodged a strong protest with the central government against restoration of Dearness Allowance (DA) with a quarter lag. spoke to the President of NCOA, Shri Alok Roy who said “it looks that DPE missed the few important basic facts while issuing the order of DA restoration. The IDA is being automatically calculated based of ACPI index as per Pay Revision which was implemented with the approval of Cabinet, Any ministry or DPE can’t go against the cabinet decision. While the CDA is being revised by cabinet time to time. Further, as IDA w.e.f. July 2021, has already implemented in all CPSEs, organisation can’t work on two different methodologies for calculating DA. Hence DPE is not left with any other option, but has to go for corrective action.”

Below is the letter written by the NCOA to Shri Sanjay Kumar Jain, Joint Secretary, DPE, Govt of India, for the benefit of the viewers of –

Subject: Discrepancy in unfreezing circular by DPE

This has reference to the OM Under Ref: W-02/0039/2017-DPE(WC)/GL-II/21 dated 02-08-2021, W-02/0002/2014-DPE(WC )-GL- III/2021 dated 02-08-2021 and W-02/004/2014-DPE(WC)-GL-IV/2021 dated 03-08-2021 on the subject matter of unfreezing of DA and revised rate of DA for the executives under 2017 scale, 2007 scale and 1997 scale respectively.

It is a matter of surprise that the revised rates are that of April 2021 ie; 23.2%, 170.5% and 356.7% respectively for 2017 scale, 2007 scale and 1997 scale respectively. Actual rate effective from 01-07-2021 for 2017 scale is 24.6%, for 2007 scale it is 173.6% and 361.9% for 1997 scale.

It is worth to mention that the DA freezing which was implemented in the case of PSU executives 3 months later than the central Govt employees has resulted in a further loss to PSU executives since the DA as on 30-06-2020 was 18.7%, 160.7% and 340.2% respectively for 2017 scale, 2007 Scale & 1997 Scales. Whereas during the next quarter it got reduced to 18.4%, 159.9% and 338.7% respectively and ended up in freezing at this lower rate.

Since DA for non executives was not frozen, the same has already implemented at 24.6% for 2017 scale, 173.6% for 2007 Scale and 361.9% for 1997 scale of workmen. Hence the disparity in DA between Executives & Non Executives will create anomaly even during non freeze period of DA as well.

Hence it is requested to correct the mistake and issue fresh circulars effective from 01-07-2021.

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