No DA-Basic Pay Merger: Government Clarifies Stance Amidst Union Demands

In a significant development for millions of central government employees and pensioners, the government has definitively clarified that it is not considering a merger of Dearness Allowance (DA) with basic pay. This announcement comes amidst persistent demands from various employee unions, who have been pushing for an interim merger as a measure to cushion the impact of rising inflation.

Dearness Allowance is a crucial component of salary and pension, designed to offset the effects of inflation on the cost of living. It is revised periodically to ensure that the real value of remuneration remains stable. Unions have been advocating for a merger, drawing parallels with past instances where DA was merged with basic pay when it crossed a certain percentage, often seen as a way to enhance the basic pay structure and subsequently, other allowances linked to it, such as House Rent Allowance (HRA) and travel allowances.

However, the central government has clearly stated its position, indicating that no such proposal is currently under consideration. This stance implies that while DA will continue to be revised based on inflation indices, there will be no re-structuring that integrates it into the basic pay. Such a merger typically has substantial financial implications for the exchequer, potentially leading to a significant increase in the overall salary and pension bill.

For now, employees and pensioners will continue to receive DA as a separate component of their remuneration. The government’s clarification brings an end to speculations surrounding a potential merger, reiterating its current policy direction despite ongoing pressures from employee representatives regarding the inflationary environment.