Will DA Be Merged With Basic Pay? Centre Replies In Lok Sabha, Big Update On 8th Pay Commission
DA Merger Update: Crucial news has emerged for Central Government employees. Putting an end to long-standing speculations and expectations, the Central Government has finally clarified its stance in the Lok Sabha regarding Dearness Allowance (DA) and the Pay Commission. The Ministry of Finance has answered the burning question of whether DA will be merged with Basic Pay amidst rising inflation.
Recently, through Unstarred Question No. 212 in the Lok Sabha, specific information was sought from the government. The core subject of these questions revolved around the formation of the Central Pay Commission and the potential merger of DA considering the soaring inflation. Let us delve into exactly what the government has stated.
Questions Raised in Lok Sabha and Government’s Reply
Members of Parliament primarily drew the government’s attention to two key issues. The questions were aimed at understanding what relief measures the government is considering for government employees and pensioners struggling with inflation.
| Query | Government’s Response |
|---|---|
| Has the notification for the constitution of the Central Pay Commission been issued? | The government confirmed that a resolution or notification for the constitution of a Central Pay Commission has been issued. |
| Will DA be merged with Basic Pay due to inflation? | No. The government clearly stated that no proposal to merge the existing DA with basic pay is currently under consideration. |
End of Speculation Regarding DA Merger
For a long time, there was a prevailing notion among government circles and employee unions that once the Dearness Allowance crosses the 50% mark, it would automatically be merged with the Basic Pay. However, the government’s recent response has dashed these hopes. In a written reply, the government stated, “No proposal regarding merger of the existing Dearness Allowance with basic pay is under consideration with the Government.” This implies that employees will continue to receive salaries under the current DA structure, and there is no plan to merge it with the basic pay.
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Join on TelegramInflation and the Process of DA Determination
While rejecting the demand for DA merger, the government explained that it takes regular steps to tackle the impact of inflation. Central government employees are granted DA or DR (Dearness Relief) twice a year, that is, every six months. This allowance is determined based on the data of the ‘All India Consumer Price Index’ (AICPI) published by the Labour Bureau under the Ministry of Labour and Employment. The government claims that this mechanism is sufficient to handle the effects of inflation over time.
On the other hand, West Bengal state government employees are also continuing their legal battle demanding arrears of DA. Their primary demand is also this AICPI-based Central rate of DA. According to reports, a significant verdict regarding this case might be delivered in the Supreme Court within the next few days, which millions of state government employees are eagerly awaiting.
