Is There a Proposal to Merge DA with Basic Salary?
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Synopsis
The Indian government has firmly stated that it is not considering any plans to merge dearness allowance with basic salary for central employees, amid rising inflation concerns. This clarification comes as employees demand adjustments in line with current economic realities.
Key Takeaways
- The government is not merging DA with basic pay.
- Inflation is a key concern for central government employees.
- No interim relief measures are being proposed currently.
- Employee unions are demanding a merger of DA with basic salary.
- The government has debunked misinformation regarding DA for retirees.
New Delhi, Nov 1 (NationPress) The government has officially stated that it is not contemplating the merger of the dearness allowance (DA) for central government employees with their basic salaries, as confirmed in Parliament on Monday.
In light of rising speculation regarding the 8th Central Pay Commission, the Centre has made it clear that there are currently no proposals under review to provide any interim relief to central government employees.
While addressing a written inquiry in the Lok Sabha, Minister of State for Finance, Pankaj Chaudhary, asserted that the Centre is not exploring any strategies to combine the existing dearness allowance with basic pay.
“There is no proposal for merging the existing dearness allowance with the basic salary under the government’s consideration at this time,” he remarked.
Chaudhary's comments came in response to queries highlighting that central government employees and pensioners are facing the highest inflation rates seen in three decades, arguing that adjustments to DA and DR do not align with current retail inflation.
Employee unions have been advocating for the merger of 50 percent DA with basic pay, especially following the government's announcement of the terms of reference for the 8th CPC earlier this November.
In a related update, the government recently debunked a viral message circulating on social media that claimed retired government employees would cease to receive dearness allowance (DA) increases and future pay commission benefits under the Finance Act 2025. The government clarified, stating, "This claim is false. An amendment to Rule 37 of the CCS (Pension) Rules, 2021 indicates that if an absorbed PSU employee is dismissed for misconduct, their retirement benefits will be forfeited," as posted on social media.
The recent amendment pertains exclusively to a limited group under the CCS (Pension) Rules, 2021, where Rule 37(29C) was altered after consultation with the Department of Pension and Pensioners’ Welfare and the Ministry of Finance.
Point of View
Our stance remains aligned with the nation's interest. The government's decision not to merge dearness allowance with basic pay reflects a cautious approach in challenging economic times. While employees express valid concerns, particularly amid high inflation, the government must balance fiscal responsibility with the need for fair compensation.
NationPress
01/12/2025
Frequently Asked Questions
Will the DA be merged with basic pay in the future?
Currently, the government has stated that there are no proposals to merge dearness allowance with the basic salary.
What is the reason behind the government's clarification?
The clarification comes amidst growing speculation regarding the 8th Central Pay Commission and employee concerns about inflation.
Are there any changes expected in DA revisions?
As of now, no changes or revisions to the dearness allowance have been proposed by the government.
What was the government's response to misinformation about DA?
The government has denied claims that retired government employees will stop receiving DA increases and clarified the context of amendments to pension rules.
How are employee unions reacting to this news?
Employee unions continue to push for the merging of 50 percent DA with basic pay, especially in light of current inflation rates.
