No Plan to Merge DA With Basic Pay, Says MoS Finance Pankaj Chaudhary in Lok Sabha

No Plan to Merge DA With Basic Pay, Says MoS Finance Pankaj Chaudhary in Lok Sabha

The government is not considering merging dearness allowance (DA) of central government employees with the basic pay, the Parliament was informed on Monday.

With increasing speculation over the 8th Central Pay Commission, the Centre has clarified that no proposal is at present under consideration to give any interim relief to the central government employees.

While replying to a written query in the Lok Sabha, Minister of State for Finance, Pankaj Chaudhary, said the Centre is not examining any plan to merge the existing dearness allowance with basic pay.

“No proposal regarding the merger of the existing dearness allowance with the basic is under consideration with the government at present,” he stated.

Chaudhary was responding to questions which pointed out that central government employees and pensioners have been battling the highest levels of inflation seen in three decades, arguing that DA and DR revisions are not in sync with the current retail inflation.

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Employee unions have also been demanding the merger of 50 per cent DA with basic pay, all the more so after the government announced the terms of reference for the 8th CPC earlier in November.

Meanwhile, the government recently dismissed a viral social media message that claimed retired government employees would stop receiving dearness allowance (DA) hikes and future pay commission benefits under the Finance Act 2025. “The claim is fake. Rule 37 of the CCS (Pension) Rules, 2021 has been amended to state that if an absorbed PSU employee is dismissed for misconduct, their retirement benefits will be forfeited,” the government said in a social media post on X platform.

The recent amendment only related to a narrow group under the CCS (Pension) Rules, 2021, where Rule 37(29C) was amended after consultation with the Department of Pension and Pensioners’ Welfare and the Ministry of Finance.