Alternative to freezing of DA/DR suggested

Ref. No: Cab Secy/01/2020                                    Date: 04.05.2020

To

The Cabinet Secretary,

Rashtrapathi Bhavan, New Delhi

Sir,

Sub: Freezing of DA for Central Government employees – as alternative request for deferment instead – reg.

          Kind reference is invited to the decision of the Government to freeze DA that has accrued for the CG Employees from January 2020, up to July 2021 including any further DA that could accrue during the said period.  It has also been announced that no arrears of the same would be payable after July 2021 also.

          The immediate fall out of the above decision is that those retiring up to July 2021 will face a permanent monetary loss throughout the rest of their lives in the form of reduced DCRG and leave encashment benefits.  Similarly, at a time when the pensioners belonging to the most vulnerable age group have to be taken care of, their pension will get affected adversely.

          Our members have been generously contributing to the PMREF, PM CARES, CM Relief Funds of different States/UTs and other social organisations for relief work.  Many of our members have also organised relief work on their own, wherever possible. 

The Department of Revenue has also made an appeal to all Government Employees to make liberal contributions to the PM CARES towards COVID 19, from the salary of May 2020 to March 2021 vide F. No. A-50050/42/2020-Cash dated 29^th April 2020.  We however fear that with the DA/DR freeze in force, the call of the Department of Revenue may not get the same enthusiastic response which it could have otherwise received.

           It is a matter of fact that the 4% DA that had fallen due on the first of January 2020, was only due to the increase in the All India Consumer Price Index and hence was only to replenish the value of income in the hands of the Government servants, which had already dwindled.  Thus freezing of DA/DR is nothing but a reduction of salary. 

     

When we are part of the Government, our own Government could not have taken a decision of such great magnitude, concerning our salary which is built up on the edifice of mutual consultation and scientific evaluation, without even consulting our representatives on the staff side in the National JCM. 

Freezing DA/DR for 18 months will be a loss of 72% at the least, for every employee and pensioner.  Any future depletion of value of emoluments at the hands of the Government servant due to future price rise also will go un-replenished and the monetary loss will be much more.  By a conservatory estimate, the reduction will be at least equivalent to one month’s salary. Further, the cost of living, due to private transport, health care, etc are only set to increase, apart from the rate of price rise not expected to decrease any time.  Hence, a compulsory deduction of salary could be harsh. 

All Government Servants contribute through their services. To deduct salary in such an unprecedented manner would demoralise the very work force which is in the field fighting the COVID 19.  The Government servants are the ones who come up to help overcome not only in this pandemic, but any disaster or difficulty that the society faces any time. Even in normal times they are essential, though it becomes perceptible only at times of difficulties. The distinction of ‘pride of service’, cannot therefore be compromised for a mere ‘labour for wages’.  It is based on this fundamental plank that Government service itself exists. It is this fundamental fact that gives them the moral gumption to face any difficulty before the nation and also that which deserves due appreciation.  It is therefore humbly requested that this work force should not be allowed to get de-motivated.

When our Government itself has been rightly insisting that private employers and contractors should continue payments to their employees during the lock down and that house owners should not demand rent for this period, there could not be a contrary approach to its own service personnel.  Reduction of salary by the Government for it’s own employees, will have an adverse effect on the emoluments of all work force down the line, having a downward spiralling effect and for all time to come. Apart from the impact such an event could have on the economy as a whole and the well being of the nation, we fear that the Government, by this, will lose it’s pride and eminence as a model employer.

Further, though the Government has instructed the Banks not to insist on EMIs on loan repayments, up to June 2020, the Banks are learnt to have taken a stand that though the EMI could be postponed, the interest will keep accruing. As a result, we will only be forced to make more payments, towards our loans, during this lock down period also, though at a later date.

Hence keeping in view the above, it is humbly suggested that the decision to freeze DA/DR may kindly be withdrawn altogether.  If for paucity of funds, it is not possible at this time, then as an alternative we suggest that it may only be deferred by crediting the present instalment and any future instalments upto July 2021, to the GPF accounts of the employees, with a moratorium on withdrawal (except in case of grave medical emergency or death of family members) for a period of 2 years.  This will also ensure that the pensioners who are in the vulnerable age group are not adversely affected.

With fond hopes that the Government would consider the above appeal keeping in mind the long term effects and morale of ground level staff of its own service personnel,

We remain,

                                                                                                    Yours truly,

(R. Manimohan)

SG, AIACEGEO

Copy submitted to:

(1)        The Revenue Secretary, North Block, New Delhi –

(With an assurance that on de-freezing of the DA as requested by us above, we will mobilise contributions to the PM CARES as per the appeal of Revenue Department dated 29.04.2020 cited in this letter)

(2)        The Expenditure Secretary, North Block, New Delhi.

(3)        The Secretary, DOPT, North Block, New Delhi.

(4)        The Chairman, CBIC, North Block, New Delhi.

(5)        The Secretary General, Confederation of Central Government Gazetted Officers Organisations

(R. Manimohan)

SG, AIACEGEO