As per Hindu Businessline News the Cabinet approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. The excerpt of Hindu Businessline News is reproduced below:-

Ahead of general election, the Centre today took key decisions to woo minorities and Government employees.

For minorities, the Cabinet has decided to form equal opportunity commission as suggested by Sachhar Committee. This commission will suggest ways to ensure equal opportunities in jobs, education and even finding house on rent for minorities. The commission is expected to be constituted soon.

Terms of reference for 7th pay commission

In order to benefit over 50 lakh employees and over 30 lakh pensioners, the Cabinet also approved terms of reference for seventh pay commission. This includes merging dearness allowance above 50 per cent with basic pay. Currently DA is around 90 per cent of basic pay and another hike of 10 per cent is expected soon. DA is calculated on the basis of change in retail inflation.

Source: Hindu Business Line
http://www.thehindubusinessline.com/economy/policy/cabinet-okays-setting-up-of-equal-opportunity-commission-coal-regulator/article5708924.ece

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