Pay Commission Hears Dearness Allowance Demands in Jaipur

Jaipur Meetings

The Eighth Pay Commission, the panel that reviews pay, allowances and pensions for central government employees, held two days of meetings with employee unions and pensioner groups in Rajasthan. AajTak reported that the state visit began on Monday, 31 August, with official meetings in Jaipur on 31 August and 1 September.

According to AajTak, the commission's website set no agenda for the Rajasthan meetings. The broadcaster said dearness allowance, known as DA, is expected to come up alongside the fitment factor, house rent allowance and pension levels. The fitment factor is the multiplier used to work out revised basic pay when a new commission takes effect.

Dearness allowance is the portion of a government salary meant to offset the rising cost of living. AajTak said it is being looked at in light of inflation and current costs, but that no final decision has been taken on the fitment factor, salary growth, allowances or pension changes.

The commission has toured several states since March to hear representatives, unions and other stakeholders before drafting its recommendations. The current dearness allowance rate, and any figure it might be moved to, is not stated in these reports.

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Allowances and Arrears

ABP News reported that more than one crore central government employees and pensioners are waiting for the Eighth Pay Commission to take effect. Its report has not yet been submitted, and more time will pass between the report and implementation.

ABP News said arrears are calculated only on the difference in revised basic pay. Allowances including house rent allowance, travel allowance and dearness allowance are not revised for past months, so no arrears are paid on them.

On one estimate cited by ABP News, based on a fitment factor of 2.57 and a possible 20 month delay, employees at levels 4 to 7 could receive up to 14.10 lakh rupees in arrears. Its worked example takes a basic salary of 44,900 rupees rising to 1,15,393 rupees, a monthly difference of 70,493 rupees, multiplied by 20 months.

Pension Commutation Demands

Livehindustan reported that employee bodies and pensioner associations want the restoration period for commuted pension cut from 15 years to 11. At retirement, staff may convert up to 40 percent of basic pension into a lump sum, with that share deducted from the monthly pension for 15 years before full pension resumes.

NC-JCM, AIDEF, FNPO, Bharat Pensioners Samaj and the All Pensioners Association have asked for 11 years, while AINPSEF wants 10 and IRTSA has proposed 12, Livehindustan said.

Bharat Pensioners Samaj argues the 15 year rule was framed in 1986, when indicative interest rates stood at 12 percent against 7.10 percent in 2023, and average life expectancy was 57.7 years against 70.42 years.