Merger of DA with Basic Pay

Finance Ministry says ‘6th CPC did not recommend merger of DA with Basic Pay’

With respect to a Lok Sabha Query, Minister of state for Finance Shri. Namo Narain Meena replied that 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage which has been accepted by Government.

The full text of this Lok Sabha Query is as follows.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO 3632
ANSWERED ON 14.12.2012
MERGER OF DA IN BASIC PAY

3632 . Shri SOMENDRA NATH MITRA

Will the Minister of FINANCE be pleased to state:-

(a) whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners;

(b) if so, the details thereof and reaction of the Government thereto; and

(c) the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (E&FS) (SHRI NAMO NARAIN MEENA
(a): Various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners.
(b): A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.
(c): The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.