Is merging Dearness Allowance (DA) into ‘Basic Pay’ one of the 7th Pay Commission Recommendations? Some rumours about the 7th Pay Commission recommendation about DA Merging to Basic Pay are speculated. However, what is the 7th Pay Commission Recommendation on it? Lets Discus.
Recently, the central government increased the Dearness Allowance (DA) for central government employees by 4%, bringing it up to 50%. This also increased the Dearness Relief (DR) for central government employees by 4%, bringing it up to 50% as well. The revised DA came into effective from January 1, 2024.
There have been speculations about whether DA and DR will automatically be merged into the basic pay of central government employees now that they have reached 50%. However, financial experts say that there are no such proposals in the 7th Pay Commission report, which means that it is unlikely that DA and DR will be merged in the basic pay of employees this time.
In the past, when DA reached the 50% mark, it was merged with DR into the basic pay of employees. However, there is no guarantee that this will happen again. The decision ultimately depends on the central government.
It is worth noting that the 5th Pay Commission report recommended merging DA into Dearness Pay in order to cross the threshold limit of 50%. This recommendation was implemented in 2004, which caused problems for central government employees and pensioners. However, the 6th Pay Commission did not make any such recommendations, and there are no such proposals in the 7th Pay Commission report either.
