Merger of 50% DA (dearness allowance) with Basic pay
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
UNSTARRED QUESTION NO-4384
4384 . SARDAR BALWINDER SINGH BHUNDAR
(a) whether the earlier Pay Commissions for Central Government Employees had recommended that a certain percentage of Dearness Allowance to be treated as Dearness Pay;
(b) if so, the details thereof; and
(c) by when the salaried class as well as pensioners are likely to be benefited so as to overcome the hardship being faced by them to maintain their day-to-day household expenses?
Minister of State in the Ministry of Finance (E & FS)
(Shri Namo Narain Meena)
(a)&(b) The 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.
(c) The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.