Compiling of Question and Answers about the news of “50% DA MERGER” to Central Government Employees and Pensioners – Hon’ble Parliament Members asked frequently about the expectation of 50 per cent Dearness allowance merging with basic pay to all CG Staff and Pensioners in Parliament (both Lok Sabha and Rajya Sabha) and the concerned minister has replied to these questions, we are compiling here for your information…

LOK SABHA

UNSTARRED QUESTION NO 3442

ANSWERED ON 30.08.2013

Minister of State for Finance said in the Lok Sabha on 30th August 2013 that “some Central Government Employees Associations have been demanding for the merger of 50% Dearness Allowance with Basic Pay and for constitution of 7th Pay Commission. The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government accepted this recommendation vide its Resolution dated 29.08.2008. The recommendations of the previous Pay Commission i.e. 6th Central Pay Commission, were given effect from 1.1.2006. The setting up of next Pay Commission is considered normally after a gap of 10 years between two successive Pay Commissions. Hence the question of delay does not arise.

Dearness Allowance to Central Government employees is revised twice a year w.e.f. 1st January and 1st July, calculated on the basis of percentage increase in All India Consumer Price Index for Industrial workers”.

RAJYA SABHA

UNSTARRED QUESTION NO-4384

ANSWERED ON-07.05.2013

The below information was submitted by the Minister of State for Finance Shri Namo Narian Meena in Rajya Sabha on 7th May 2013 that the 5th Pay Commission had recommended that Dearness Allowance should be converted into Dearness Pay each time the Consumer Price Index increases by 50% over the base index used by the last pay Commission. Accordingly the Government issued orders on 27.02.2004 for merging of 50% of the DA with the basic pay w.e.f.01.04.2004.

The 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. Hence the question to merge DA with basic pay does not arise. However, the rate of DA is being revised at periodic intervals.

RAJYA SABHA

UNSTARRED QUESTION NO-4385

ANSWERED ON-07.05.2013

Minister of State for Finance said in the Rajya Sabha on 7th May 2013, the 6th Central Pay Commission had recommended not to merge Dearness Allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008. There is no time frame/date prescribed for announcement of Dearness Allowance. The revision of rate of Dearness Allowance is announced by the Government as and when approved by the Cabinet.

RAJYA SABHA

UNSTARRED QUESTION NO-3139

ANSWERED ON-23.04.2013

There is no fact in dearness allowance is merging with basic pay after it crossed 50% level, the Minister of State for Finance Shri Namo Narain Meena said in the Rajya Sabha on 23rd April, 2013 and he also said that the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.

LOK SABHA

UNSTARRED QUESTION NO 5245

ANSWERED ON 26.04.2013

Shri Namo Narain Meena said in the Parliament on 26th April 2013, there is no proposal to merge 50% of Dearness allowance with basic pay and he also said that the 6th Central Pay Commission had recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Resolution dated 29.08.2008.

RAJYA SABHA

UNSTARRED QUESTION NO-1591

ANSWERED ON-12.03.2013

While answering to a question about the overdue of dearness allowance with pay and pension in the Parliament on 12th March, 2013, shri Namo Narain Meena said that no overdue and the 6th Central Pay Commission has recommended not to merge dearness allowance with basic pay at any stage. Government has accepted this recommendation vide Government of India Resolution dated 29.08.2008.

LOK SABHA

UNSTARRED QUESTION NO 3632

ANSWERED ON 14.12.2012

The below information was submitted as written reply for a question in Parliament on 14th December 2013 as follows…

A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.

The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.

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Member of the Seventh Central Pay Commission Rathin Roy has suggested that to meet its fiscal deficit target the Government should merge the basic pay and dearness allowance (DA) of central government employees in the current year and defer implementing any real increases in pay and pensions. This, the member has said, could be done by compensating those who would have to bear the burden of the deferred effect by giving them a “more generous award distributed over several years”.

“I am saying that the increment need not all be given at one go… It can be staggered and made more generous… So this could be done for pay and for pension,” Dr. Roy told The Hindu in an exclusive interview. “Now I am not competent to say whether this is politically feasible or not,” he, however, added.

Last month, the Union Cabinet set up an empowered committee of secretaries under the Cabinet Secretary for processing the recommendations of the Commission.

The pay and pension revision recommendations of the Commission are scheduled to take effect from January 1, 2016, but Dr. Roy, who is also the National Institute of Public Finance and Policy’s Director, has suggested that the implementation should be pushed to April 1.

What they should get, from April 1, 2016, is what they would get if we merge the basic pay and the DA, which is more or less what they are already getting, he said. “That will mean some increase in allowances but other than house rent allowance the burden of that [on the government budget] will not be very high.” He has also recommended that the Government defer allowances, principally the house rent allowance. “The case for that is strong because we are in the midst of fairly flat growth in consumption expenditure and rents are not going up much.”

Ahead of the presentation of Union Budget 2016-17, the Government is considering options for keeping the fiscal deficit for the next year within the Fiscal Responsibility and Budget Management target. The Government’s fiscal deficit in 2008-09, the year the Sixth Central Pay Commission award was implemented, doubled to 6 per cent, though not all of the increase was on account of the pay and pension hikes. Currently, Central government pay and allowances account for 1 per cent of the country’s GDP.

The Seventh Pay Commission, which submitted its report in November 2015, estimated that the total financial impact due to the hike in pay and allowances of central government employees recommended by it would be Rs 1,02,100 crore. Of this, Rs 73,650 crore will be borne by the General Budget and Rs. 28,450 crore by the Railway Budget. The Commission was set up by the UPA government in February 2014 to recommend revisions of remuneration for 48 lakh central government employees and 55 lakh pensioners.

Source: The Hindu

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