The Government of India has already instituted the 7th Pay Commission. The Union Cabinet is expected to include the proposal of increase and merge dearness allowance (DA) with basic pay.The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly constituted pay commission before the code of conduct for the Lok Sabha polls comes into force.
Central government employee unions have been demanding that besides raising DA to 100%, the Centre should revise the pay and merge DA with basic pay, considering inflation and price hike of essential commodities.
As per practice, DA is merged with basic pay when it reaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.
An official said if merger of 50% DA with basic pay was decided, it could lead to hike in salary by around 30-35%. He added that there were instances of announcing interim relief to employees, apart from DA, by a newly constituted pay commission prior to their implementation
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