Dearness allowance as Dearness Pay

While answering to a question raised by our Hon’ble Member of Rajya Sabha Shri. Sardar Balwinder Singh Bhundar, the Minister of State in the Ministry of Finance (E and FS) Shri.NamoNarain Meena replied in a written form 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’.

 

Source: CGEN.in
[http://centralgovernmentemployeesnews.in/2013/08/dearness-allowance-as-dearness-pay/]