50% DA MERGER  : Any possible to convert 50% of dearness allowance to dearness pay..!

Everyone’s pointing fingers at “Parliament Election”…!

In the year 2004, 50% of dearness allowance was merged with basic pay for Central Government Employees and Pensioners with effect from 1.4.2004. This was implemented as per the recommendation of 5th Central Pay Commission and the Union Government had decided to merge 50% of dearness allowance with baisc pay and issued orders on 1.3.2004. The DA was 61% at that time. (61% – 50% = 11%) 50% of dearness allowance was merged with basic pay and the remaining 11% was issued as normal dearness allowance with effect from 1.1.2004.

Example : An employee’s Basic Pay had revised as under on 1.1.2004 after 50 % DA merged with basic pay…

Basic Pay Dearness allowance 61% Total Basic Pay Dearness Pay Remaining percentage of Dearness allowance 11% Total Difference
4000 2440 6440 4000 2000 660 6660 220

[And the next instalment of additional dearness allowance from 1.7.2004 declared as 3%, then the total dearness allowance went up to 14%. When implementation of 6th CPC, the above employee’s basic pay was 4200 as on 1.1.2006, it just multiply with 1.86 and add with corresponding grade pay.]

Everybody thinks that merger of 50% DA is more beneficial…. But it is not like that…….!

It is essential to CG Employees, of course for others also, a regular increase in the basic pay is needed………!

For Example, an employee’s basic pay Rs.10000 as on 1.1.2011, after merging of 50% dearness allowance the calculation is clearly shows the difference only 50 rupees per month…

Basic Pay Dearness allowance 51% Total Basic Pay Dearness Pay Remaining percentage of DA 1% Total Difference
10,000 5100 15100 10000 5000 150 15150 150

“Note that the 50% of Dearness allowance will not be merged with basic pay, instead, the amount will be shown as ‘Dearness Pay’. This amount will be payable only upto the date of implementation of 7th pay Commission.

This is only as a advance hike for all employees before the implementation of 7th CPC.

When fixation of pay on the recommendations of 7th CPC on 1.1.2016 according to the revised pay rules, the amount of ‘basic pay’ will be taken without dearness pay.

For example, approximately basic pay of the above employee will be 12,250 as on 1.1.2016 . This amount only will be taken as Basic Pay for the calculation of pay fixation against the amount of 18,375.

The enhanced amount will be given for us as ‘Interim Relief’ for the period between announcement and implementation…It is not at all merged with ‘Basic Pay’..!

We can hear, what about hike in HRA and other entitlements…

The rate of HRA is provided according to the cities, like 10, 20 and 30%. Not all the employees are getting 30%. And one more important points is the percentage hike in HRA will not applicable to those who are living in Government Quarters. In major metropolitan cities, thousands of employees are residing with Government Accommodation. They will pay more as HRA to Government and they don’t bother about increasing in HRA.

Transport Allowance is providing according to their GP and classified cites, the amount is vary from 400 to 3200 plus DA thereon. The DA amount may decrease when 50% of DA merged with basic pay.

So, ultimately hike in Basic pay only the factor is more beneficial in DA Merger.

But in 6th CPC there was no recommendation to convert dearness allowance as dearness pay each time the CPI increase by 50% over the base index recommended in pay commission report.

All Central Government employees federations are showing maximum effort to achieve the demand of “Merger of 50% Dearness Allowance with Basic Pay” at this time.

Federations sources said, there will be chance to announce before March…!


50% DA Merger – A Sad End to A Demand…!

90Paisa published an interesting article about one of the major demand for CG Employees…!

On 01.01.2011, DEARNESS ALLOWANCE crossed 50%. It started from ‘0’ in 2006 and, within 5 years, i.e., in 10 instalments, it has completed 50%.

The second instalment in 2010 touched two-digits for the first time. Since the last two instalments too were of ten percent each, the Dearness Allowance easily touched 100% in six instalments.

Ever since the DEARNESS ALLOWANCE crossed 50%, the demand for 50% DA MERGER began.

Since 2012, questions regarding this were raised in the Parliament a number of times, but the Government chose to reject all of them.

When all FEDERATIONS made this their most important demand, it was included in the CHARTER OF DEMANDS. As a result, without any distinction, all the employees are very much eager to see the outcome. They began to calculate the financial benefits that result when 50% DEARNESS ALLOWANCE gets added to the basic salary. In addition to these, an online calculator too was launched.

All the unions and federations began exerting pressure on the Government. Protests were announced. Decisions were made to hold strikes and strike notices were issued to the Government. The CONFEDERATION created a record of sorts by conducting 2-day long strike.

There were constant reports that Federation leaders had been raising the demands with the Government during various levels of talks. When some of the Federations issued strike notices, the Government invited them for talks and the proposed strike was withdrawn. This further strengthened hopes.

Although no official announcements were made, the federation leadership said that the Government had given implied consent to the demand. Everyone thought their mission was accomplished successfully.

All the newspapers were ready to print headlines announcing a 30% hike in basic pay for Central Government employees.

Since this was the last Cabinet meeting of this Government, there was no dearth of excitement and expectations. During the cabinet meeting that began on February 28, 2014, the Government announced a 10% hike in DA. But, in a hurry to beat competition, leading news channels began running news scrolls that the Government had given ‘Merger of 50% DA’ with basic pay. It was only after 30 minutes that the channels realized their mistake and corrected the scroll headline to ‘Hike in DA by 10%’.

But, by then, it had created endless confusion.

One can say that there would have been no Central Government employee who didn’t get upset that day. So high were their hopes. But, all their hopes were crushed when the news turned out to be false.

The Demand for 50% DA Merger Met with a Sad End…!


  1. venkateswarlu says

    A compromised 7th CPC payscales are as follows:
    80000 fixed——–>210000
    90000 fixed——–>230000

  2. ishwar dass parwana says

    getting pension on 1.1.2014 10,000/pm. how much pension i will get on 1.1.2016 after merging 50% of DA.with basic and what will be the amount of DA if there is another increase of 10% (assumed for calculation).

    mail me asap on

  3. ishwar dass parwana says

    i am retired since 1992 getting pension near by 1192 and how much i get from 1.1.2016 which is in 7th cpc.
    reply regards

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