Dearness allowance (DA) and inflation relief (DR) is an important part of their earnings for central employees and pensioners. It helps a lot in handling their expenses during the growing inflation. A rule is also that if the rate of DA or Dr is 50% or more, it is added to basic salary or pension (merge).
Currently, dearness allowance has crossed the important stage of 50% (the current rate is 50% from January 2024). For this reason, the question was arising again and again whether the government would decide to merge it in the basic salary or pension of employees, without waiting for the report of the Eighth Pay Commission. The same question was asked by Samajwadi Party MP Javed Ali Khan in the Rajya Sabha. Now the government has made its stand clear on this.
Government’s blunt reply: At present, no intention is to merge DA/Dr
Minister of State for Finance Pankaj Chaudhary has made it very clear in his written reply to the Rajya Sabha that before the formation of the Eighth Pay Commission, to merge the dearness allowance (DA) to the original salary or inflation relief (DA) in the original pension No proposal is under consideration,
He told that the rates of DA/DR changes every 6 months. It is decided based on data from All India Consumer Price Index (AICPI-IW), which is issued by the Labor Bureau of the Ministry of Labor.
Why is DA/Dr?
The Minister of State for Finance also said in his reply that the purpose of giving dearness allowance (DA) and inflation relief (DR) to central employees and pensioners is that the impact of rising inflation should be less on their pockets. This helps to maintain their basic salary and pension purchase power.
DA has increased 15 times since the 7th Pay Commission
The Finance Ministry also informed that ever since the recommendations of the 7th Pay Commission (since January 1, 2016), the government has increased the DA/DR rates for central employees and pensioners since then. This shows that the government has been taking steps to reduce the impact of inflation from time to time.
What will happen next?
It has become clear from the government’s reply that DA will not be merged into basic salary or pension before the report of at least the eighth pay commission. Now it will be seen what the government takes on this in future and when the eighth pay commission is formed, what is said on this issue in its recommendations. At present, employees and pensioners will have to wait for DA merger.
The post is a big question on DA merger before the 8th Pay Commission, the government has given a direct answer in Parliament, know what is the situation first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
