Big News for Central Government Employees: If you’re a central government employee, this update is crucial for you. Recently, the government announced a 3% increase in the Dearness Allowance (DA), raising it to 53%. This move aims to strengthen the financial position of employees. However, the increase has sparked discussions about whether the DA will now be merged with the basic salary. Let’s explore the latest updates on this matter.
What’s the Latest on Merging DA with Basic Salary?
The idea of merging DA with basic salary isn’t new. Discussions have been ongoing for years. In fact, during the 5th and 6th Pay Commissions, similar proposals were made when DA crossed the 50% mark. Currently, after the 3% hike just before Diwali, speculation is rife again.
Union Minister Ashwini Vaishnaw recently clarified that although the topic is under consideration, no final decision has been made yet. If this change is implemented, it will bring permanent adjustments to the salary structure of government employees.
Impact of Merging DA with Basic Salary
If DA is merged with the basic salary, it will significantly alter salary structures. This would not only increase the basic pay but also impact related allowances and benefits, potentially leading to a substantial rise in overall compensation.
Typically, the government revises DA and Dearness Relief (DR) for employees and pensioners twice a year — in March and September/October. The next DA hike is expected in March 2025. If the merger happens, employees may experience lasting financial benefits, making it easier to cope with rising inflation.