Central Goverment plans to merge DA with basic pay
Ahead of the Lok Sabha Elections 2014, the UPA government at the centre is planning to woo its central government employees and pensioners by merging DA with the basic pay.
According to the sources, the Union Cabinet may accept the proposal of merger of DA with basic salary as part of the terms of reference of the 7th pay commission.
If accepted, the move will benefit around 50 lakh central government employees and 30 lakh pensioners in the country.
It is along pending demand of Central government employees unions that besides raising the DA 100 percent it should be merged with the basic pay. As per the rule, DA is merged with basic pay when it crosses the 50% mark.
It will result in 30-35 per cent hike in salary if 50 percent DA is merged with the basic pay.
Earlier, the central government had constituted the 7th pay commission before the Model Code of Conduct comes into the force in view of Lok Sabha Elections 2014, scheduled to be held in April-May.