7th Pay Commission: Modi government gave a big good news to 1 crore central employees and pensioners of the country yesterday on 16 October. The government increased dearness allowance (DA) and dearness relief (DR) by 3 percent.
Now the DA of the employees has increased from 50 percent to 53 percent. After DA becoming 53 percent, once again the news of its merger in the basic salary has started coming. However, the government has also issued its statement on this. Expectations have started increasing from the statement issued by the government.
What will happen to dearness allowance?
After DA and DR cross the limit of 50%, DA and DR will automatically be added to the basic salary. However, such speculations have come many times. It was said in the 6th Pay Commission that when the dearness allowance crosses the limit of 50 percent, it will be added to the basic salary. Now the government has responded to this.
Will DA and DR be added to the basic salary?
The reports of the Fifth and Sixth Pay Commissions (para 105.11) recommended merging DA with the basic salary and terming such merger as dearness pay. Following this recommendation, in 2004, 50% of DA of the basic pay was merged to form dearness pay for the purpose of calculation of allowances and retirement benefits. But later this was changed. However, this change will not happen automatically. The government will have to take a decision on this.
The government said this
Central Government Employees will now get dearness allowance at the rate of 53 percent. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. Now after DA became 53 percent, it has again become a topic of discussion. On this, Information and Broadcasting Minister Ashwini Vaishnav said that the government is discussing it.
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