7th Pay Commission New Update a Big Christmas Gift for Employees DA Merger into Basic Salary…

The 7th Pay Commission remains as an important system for Indian central employees and pensioners and gives some respite from the inflationary trend through the Dearness Allowance (DA). Earlier this year the government enhanced the DA by 3% taking it up from 50% to 53% has brought lots of financial benefits to the central employees as well as pensioners.

DA Increase: A Review Based on the Recent Events

The enhanced DA of 3% has been a morale booster central employees and pensioners have benefitted largely to meet inflationary price rise. Dearness Allowance is fixed percentage of basic pay/ wage, which directly comes in to help in maintaining the purchasing power. This increase also shows the governments consideration to the needs of the employees given the escalating inflation.

Merging DA with Basic Salary: What It Could Mean

That is why it appears that in case of integration of DA into the basic salary, the pay structure of the employees might improve significantly. This integration could lead to a permanent addition of a certain cash value to the structure of basic scales thereby given employees a guaranteed improved salary scale. Also this change affected allowance, bonus, pension and other remunerations that are associated with the basic pay thereby putting round improvement on the financial well-being of the employees.

Historical Context: DA Merger in Previous Pay Commissions

The thought of incorporating DA into the basic salary is not new. The 6th Pay Commission thought of this when the DA was pegged at 50%. A similar change was instituted in 2004 to add DA into the base salary after it had risen to nearly 50 percent. But the rules were changed later once again DA is differentiated from the basic pay structures of the employees.

This merger if has to be implemented under the 7th Pay Commission would definitely be a change whereby not only salary is brought up and enhanced but also other emoluments enhancing the financial security of employees.

Awaiting Final Decision

Union ministers have recognized such talks regarding this issue, though no definite decision has been made yet. Finally, the government seems to be willing to undertake a proper analysis of potential positive effects on the employees. The DA if included in the basic salary does provide a much greater financial benefit and boost the financial security of the employees.

24 thoughts on “7th Pay Commission New Update a Big Christmas Gift for Employees DA Merger into Basic Salary…”

    • உண்மைக்கான சாத்தியக்கூறுகள் இல்லை. விடுபட்டுள்ள 4,3,4 % அகவிலைப்படி பற்றிய பேச்சுக்கான முகாந்திரமே இல்லை.

      Reply
    • Sir my mother aged above 87yrs she also getting pension from Rly and get from post office but she is not receiving arrears & increase amunt (above 80yrs, 20% & 85yrs,30%)not receiving sofor today i went to personal department at ponmalai workshop there not responding answer regarding arrears personal department once Mr SAMINATHAN TALCKING ruf & tuff kindly take further action for my mother please help me

      Reply
      • I think you better go to the bank from where she is getting her pension. Give an application. One centralized. pension processing office is there in each state for all banks.

        Reply
      • You should write to the Department,(ministry) that is your father’s parent,
        Or central pension accounting office, New Delhi, with all the required documents.

        Reply
  1. This is a government of Banias. They are very indifferent to the problems of salaried employees. Fortunately they are not telling us to earn our salaries. The day is not far off.

    Reply
  2. 1) merger of DA with basic helps only employees, since HRA, OD etc may increase. There is no increase in pay to pensioners with this merging.

    2) after merging basic with DA, now onwards DA increase every 6 months is not true. A simple example will clear doubts.

    For example Basic is 1000, DA is 500 now. And next DA increase is say 3℅. Then basic 1000, new DA 530, Total 1530.

    with merger of DA with basic, new basic 1500, DA zero, total 1500. next DA increase will be 2% and not 3% based on price index. Now basic 1500, DA 30 gross 1530.

    3) repeatedly it is said that multiplication factor is 2.6 etc. this factor is on basic and not on gross. for every pay commission, the increase in income is only 10% for majority people, after 10 years.

    For example basic 1000, DA 1250 gross 2250 in 2015 as per 6th pay.

    from January 2016 as per 7th pay, new basic = 1000 x 2.56 = 2560 and DA = 0. Gross 2560 which is 2560/2215 = 1.16 only.

    4) DA increase once in 6 months. But news appears more than 5 times giving a wrong impression to public that DA increased 5 times and this leads to price increase.

    Reply
  3. Yearly DA increase will be 2 times, but in the news, everyday there will be news about increase of DA giving very bad narrative to the public many times the DA is increased. This should be stopped immediately. The govt should give directions to the concerned not to publish about DA increase news.

    Reply
  4. Yearly DA increase will be 2 times, but in the news, everyday there will be news about increase of DA giving very bad narrative to the public many times the DA is increased. This should be stopped immediately. The govt should give directions to the concerned not to publish about DA increase news. Please repeat my comments to understand our feelings.

    Reply
  5. Bit doubtful on DA getting merged with basic. The so called Diwali Bonanza of 3% DA increase has still not been paid to pensioners even after Diwali. Now we are talking Cristmas gift. I doubt this will ever happen unless some pro government employees political parties include this in their election manifesto.

    Reply
  6. It is a mockery after 80 year old employees benefit pension raise, who is there to avail raise. Most of pensioners might have passed away. If govt intends wefare of employees. 70 years aged pensioners must be considered for the raise.

    Reply
  7. Hon. SC has asserted many times ,that Govt. shd act as a model employer,& shd act in the benifit of the employees. Govt shd cut the flab,& hv lean but efficient workforce & pay them as per international labour norms.Vigilance shd be strict & there shd be zero corruption policy.Transfer policy shd be transparent &there shd be merit based promotion ,Tenure of service shd be 15 years ,& further extention shd be performance & requirement based & all services shd be a pyramid,with strict selection criterion.Incentive & disincentive shd both play a role in carrer progression
    Pension shd be liberal ,but contributory
    Major changes rr needed & lots of administrative reforms rr need of the hour

    Reply
  8. Grant of DA from Jul 24 has been implemented oñly for persons in service? Pensioners have not received it. Pl clarify.

    Reply
  9. Already mentioned in ppo that the rise of 20% or more accordingly. Please see the ppo and apply to dispersing bank with it’s copy.I my self applied for to sbi branch

    Reply
  10. Modiji government has not done a single paisa to retired persons. He is not respecting and do any favour. He collect income taxes from pension. No remarkable activities.

    Reply

Leave a Comment