Once again, the discussions about the merger of Dearness Allowance (DA) with basic pay under the 7th Pay Commission have been put forward by the central government employees and pensioners. The DA levels have reached new highs due to the inflation-linked increases and many employees are hoping for a merger before the 8th Pay Commission is rolled out. However, the government has recently given its position on this long-standing demand.
Comprehending DA And Its Significance In Salary Structure
The dearness allowance is the main part of the salary for government employees. This allowance gets adjusted twice a year for the purpose of counteracting the effects of inflation in the economy. DA is determined as a percentage of the basic pay, therefore, any rise in the basic salary will automatically affect the DA and other allowances as well. Merger of DA means that a common percentage of DA is added to the basic pay which then greatly increases the total payable salary and pension computations.
What Makes The Employees Call For The DA Merger
The employees’ unions and federations are forwarding the claim for a DA merger with basic pay at 50%, referring to historical cases where similar mergers were sanctioned in the previous pay commission cycles. The employee representatives are firm in their assertion that the DA has struggled past a critical limit, and de-linking it from the basic pay would eventually help in the consumers’ retaining power, which is, of course, a direct consequence of the ongoing price rise. Therefore, the pensioners are aligning with the demand since it would mean larger pension sums for them too.
Government’s Official Stand On DA Merger
The central government, despite the increasing expectations, has made it clear that at least for the current pay commission the merger of DA or Dearness Relief (DR) with basic pay is not active as a proposal. The officials further added that the salary and allowance revision is a controlled process and that they can’t be changed without the provision of a detailed financial assessment. This clarification has temporarily put to rest the speculation which was going on through social media and various news channels.
Impact Of DA Merger On Salary And Pension
In case the DA is merged with basic pay, an employee’s estimated salary will become to be a basic salary increase that is the same as the amount of DA. Pensioners would receive revised higher pensions. The government will, however, face a huge financial load as the costs will be incurring with DA, and this is one of the main factors for taking a cautious stance.
Link With The 8th Pay Commission
According to the experts, the DA merger is the most likely subject to be discussed and addressed under the 8th Pay Commission that is expected to be set up in January 2026. The new commission will look into the pay scale changes, allowances, and pension schemes in total and therefore it will the suitable place for such reforms.
What Should Employees Expect Now?
As of now, the central government employees and pensioners will receive regular DA hikes as per the existing formula. The merger of DA remains to be a key demand, but its approval is likely to be contingent on the recommendations made under the next pay commission rather than the interim decision.
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