Central govt employees' DA hike: Finance ministry rules out merger with basic pay

Central government employees' DA (Dearness Allowance) hasn't increased yet. However, the central government hasn't made any decisions regarding DA. But there's good news for government employees. Also, there's big news regarding the 8th Pay Commission. 

Good news about DA

Central government employees' DA or dearness allowance has not increased yet. However, the central government has not yet taken any decision regarding DA. But there is good news for government employees. However, there is big news about the 8th Pay Commission.

8th Pay Commission

The central government has already recommended the 8th Pay Commission. So the salary will increase a lot at once.

About 50 lakh employees and 65 lakh retired employees of the central government will benefit. Dearness Allowance/Dearness Relief is provided to government employees and pensioners to adjust the cost of living and to protect their basic pay/pension from erosion of real value due to inflation.

DA with basic pay?

In this situation, one of the demands of the central government employees is to merge their dearness allowance with the basic salary.

50 percent dearness allowance

Currently, central government employees get dearness allowance or DA at the rate of 50 percent. Now the government employees demand that the dearness allowance (DR) be merged with the basic pay/pension as interim relief.

Finance Ministry source

Although the Finance Ministry claims that they have no plans to merge the DA of central government employees with the basic pay.

Reply in Rajya Sabha

Whether the government is considering merging 50% DA/DR with basic pay/pension before the 8th CPC report. In response to this question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that no such proposal is under consideration by the Finance Ministry.

The government has not yet officially constituted the 8th Pay Commission. Has recommended. The government is also expected to complete the formation process by April.

The terms and time limit for submission of the report of the 8th Pay Commission will be determined "appropriately". The basic rate of DA/DR is periodically revised every six months based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) published by the Labour Bureau under the Ministry of Labour and Employment.