8th Pay Commission: With a view to help combat inflation, Central Government employees regularly get the benefit of increase in Dearness Allowance; But the discussions about the 8th Pay Commission are gaining momentum now. At present, the labor unions in the same context have pressed for a more important demand. These organizations are demanding that Dearness Allowance should be merged with Basic Salary. What exactly is the type and what are the consequences? Let’s understand.
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Demand within the framework of the consultation process itself
A more important demand has been made by the trade unions. This demand has been made in the framework of the ongoing consultation process for the 8th Pay Commission. This has come to light through the latest information given by various employee organizations including ‘All India NPS Employees Federation’ (AINPSEF). Therefore, if this demand is accepted, it will be of great benefit.
Allowance is included in the revised pay structure itself
During our special coverage of the 8th Pay Commission deliberations, it was revealed that according to the employee unions the current level of Dearness Allowance (DA) is an indicator of how fast the cost of living has risen over the years; And therefore, now this allowance should be included in the revised salary structure itself.
This issue is very important, because if DA is merged with DA basic pay, the pay, various allowances, pensions and retirement benefits of lakhs of central government employees may be directly affected.
What is Dearness Allowance?
Dearness Allowance is an additional amount paid to government employees and pensioners, aimed at reducing the impact of inflation. As the prices of essential goods and services continue to rise, the government periodically revises the Dearness Allowance (DA) to maintain the purchasing power of the employees to some extent.
Generally, inflation allowance is revised twice a year based on inflation data. At present, Dearness Allowance (DA) is paid to Central Government employees as a separate component apart from their Basic Salary.
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