Part dearness allowance, basic pay for state staff to merge

Tuesday, 31 March 2009, 14:57 IST
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New Delhi: The government Monday approved the merger of 50 percent of the dearness allowance component of its employee salaries with the basic pay with effect from January 1, 2007. The cabinet which met here, also approved the calculation of the ceiling of 30 percent towards superannuation benefits for retired employees on basic pay plus daily allowance instead of the earlier method of calculating it on basic pay alone. The government had earlier decided that the cost of infrastructure would be monetised for the purpose of computing perquisites and allowances. Now, for the purpose of reckoning the value of infrastructure facilities, only the recurring expenditure on maintaining and running such facilities would be taken into account provided the amount was restricted to 10 percent of the basic pay of all non-executives and non-unionized supervisors.
Source: IANS
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