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Showing contexts for: nppa in Maheshkumar P Kapadia vs State Of Gujarat & on 21 October, 2016Matching Fragments
Therefore, the NPPA cannot be merged in Basic Pay, for arriving at Dearness Pay. NPPA cannot be given on the total of the merged NPPA in the Basic Pay as has been done by the GOI. The 50% DA merger has to be the 50% of the Basic Pay only and not of the Basic Pay and full amount of NPPA.
(9) By the G.R. Finance Depart No..../1198/270/CH dated 162005, it was provided that the total of Basic Pay plus Dearness Pay will be taken into account only for the purpose of DA and not for any other allowances such as HRA, CLA & NPA. The doctors had represented that they were getting less emoluments if calculation is done in that manner.
HC-NIC Page 12 of 20 Created On Sat Oct 22 01:37:21 IST 2016 After careful consideration, a GR FD No..../1198/270/CH dated 31805 was issued and according to which the Doctors were also getting the benefit of 50% DA merger, by and large, as equivalent to the other Employees of the State Government.
(10) As per GOI OM dated 8/10/2004, full NPPA is added to the Basic Pay and the 50% amount of the total of it is arrived at as the amount of Dearness Pay and on the Basic Pay plus DP, the 25% NPPA is sanctioned. Thus, the benefit of 25% NPPA is given on the earlier granted NPPA also. Hence, the State Government cannot accept the formula of GOI.
Following is an example showing the method of NPPA calculation, on the basis of GOI's OM dated 8.10.2004 and as per Finance HC-NIC Page 13 of 20 Created On Sat Oct 22 01:37:21 IST 2016 Department's GR dated 26.7.2006 of Government of Gujarat in the case of Doctor drawing a Basic Pay of Rs.18,000/.
(Based on 67% DA as on 1.4.2005)
Position prior to 50% DA Merger
Basic (as on 1/4/2005) 18000
NPPA 25% 4500
DA@67% 15075
Total 37575
Position after 50% DA Merger
(Based on 67% as on 1/4/2005)
ColumnA ColumnB
Calculation as per GOI's OM dated Formula as per GOG's GR of Finance
8/10/2004 Department dated 26/7/2006
Basic 18000 Basic (as on 1/4/2004) 18000
NPPA @!25% of Basic Pay 4500 DP @ 50% of Basic Pay 9000
Total 22500 Sub Total 27000
DP @ 50% of Basic + 11250
NPPA
Basic Pay 18000 NPPA @ 25% of Basic + 6750
DP
DP @ 50% of Basic + 11250
NPPA
29250 Sub Total 33750
NPPA @ 25% of Basic Pay 7313
+ DP
Sub Total 36563
DA @ 17% 5738
DA @ 17% of Basic + DP 6216
+ NPPA
Grand Total 42779 Grand Total 39488
(13) The petitioners have also admitted that the NPPA is not part of Basic Pay but it is being taken into account for calculation of DA. Thus, NPPA is not the Basic Pay. In para 8 above the Rules position has been made clear and accordingly the NPPA cannot be considered as Basic Pay. It can be seen from the OM dated 1/3/2004 of Govt. of India that the DA equal to HC-NIC Page 14 of 20 Created On Sat Oct 22 01:37:21 IST 2016 50% of the existing Basic Pay should be merged with the Basic Pay and shown distinctively as Dearness Pay. Since NPPA is not the Basic Pay, the 50% or 100% amount of NPPA cannot be included in the Basic Pay. Thus, it cannot be taken into account for the purpose of calculating Dearness Pay. The Govt. of India, vide their OM dated 8/10/2004, has added 100% amount of NPPA into Basic Pay and then 50% of its total is shown as a Dearness Pay. As per the GOI's own OM dated 1/3/04, 50% of the Basic Pay only has to be taken into consideration for the purpose of 50% DA merger. The State Government is of the opinion that 50% of the Basic Pay should be the Dearness Pay for the petitioners as per the formula in ColumnB as shown in the example given in para 12 above. They shall get the 25% NPPA on the total of Basic Pay plus Dearness Pay. Thus, the petitioners will get the benefit of NPPA on their Basic Pay plus Dearness Pay. Therefore, their amount of NPPA is also increasing with reference to their amount of NPPA prior to the date of DA merger. Not only this, but on this enhanced amount of NPPA, they will get DA and other allowances like HRA & CLA. As mentioned in the above example, as on 1/4/05 the total monthly emoluments of the petitioners were Rs.37,575 and now they will get Rs.39,488 and thus there is an increase in their total emoluments of Rs.1913 per month. Since NPPA is not the Basic Pay and as per the Govt. of India OM dated 1/3/2004, only 50% of the Basic Pay has to be considered as Dearness Pay, the State Government has decided the formula as mentioned in ColumnB, which is as per GR, FD dated 26/7/2006.