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To
The Director (HR)
Oil and Natural Gas Corporation Ltd.
New Delhi – 110 001
Subject: Merger of 50% of Dearness
Allowance/Dearness Relief with Basic
Pay
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Sir,
Your kind attention is drawn to the above
mentioned subject. A decision was taken by the Government
of India vide circular no. F.No. 105/1/2004-IC dtd. 01.03.2004
with effect from 01.04.2004, DA equal to 50% of the existing
basic was merged with the basic pay for the employees of Central
Government of India, with effect from 01.04.2004
Though this was only for Govt. employees,
the union cabinet further approved the merger of DA equal
to 50% of the existing basic in respect of employees in public
sector undertaking that are profit making effective from the
same date.
These decisions have been taken on the basis
of the fifth central pay commission recommendations which
ultimately became the reference document for pay revision
of Public Sector undertakings. This aspect was brought out
by Justice Mohan Committee report on pay revision of PSUs
also. The Justice Mohan committee had recommended for implementation
of central DA pattern for PSUs also.
While implementing the pay revision w.e.f.1.1.1997
100% DA neutralization based on the central DA pattern was
implemented for us also. The difference was the reference
date, which in our case was 1.1.1997 and for central government
was 1.1.1996. In fact this discrepancy due to difference in
reference dates shall also be rectified during the ensuing
pay revision.
This clearly brings out that the dispensation
as well as treatment for dearness allowance has to be same
for us also. Since the reference date is different, hence
the only difference would be date of applicability.
Accordingly, it is requested that DA equal
to 50% of the existing basic pay be merged with the basic
pay as Dearness Pay (DP). This needs to be counted for purposes
like payment of allowances, transfer grant, retirement benefits,
contribution to CPF, HRA, Lease/Self Lease fees, various advances
etc.
As this issue has already been approved by
the Government of India, hence it is requested that this be
implemented for us all at the earliest.
With regards.
Yours sincerely,
(Amit Kumar)
President ASTO, Delhi
Copy to:
1. Director (Finance), ONGC, New Delhi.
2. GGM-Chief-ER, ONGC, Dehradun.
3. President/Secretary – All ASTO Units.
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