27 May, 2024 03:05 PM

Financial Express reports DA merger with Basic after election

Financial Express reports DA merger with Basic after election

The recent 4% hike in Dearness Allowance (DA) for Indian government employees has set off a buzz about a potential merger of this allowance with their basic salary. This isn't the first time such speculation has arisen. Back in 2004, when DA climbed to 50% of basic pay, the government implemented a merger following recommendations from the 5th Pay Commission.

This time around, the jump in DA to 50% has reignited calls from employee unions and some experts for a similar merger. They believe that with the upcoming DA revision in July 2024, which is expected to push DA beyond the 50% mark, the government might announce the merger. However, this would also mean the DA would reset to zero.

There's a crucial point to note here: the government has remained tight-lipped on any plans for a DA merger. While there were talks about a corresponding increase in gratuity limits due to the DA hike, those plans have also been put on hold for now.

So, the question of a DA merger with basic salary remains unanswered. Employee unions and some experts are hopeful, but an official announcement from the government is awaited.


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