Employee unions urge DA merger under Seventh Pay Commission rules
Employee unions are calling for Dearness Allowance (DA) to be added to basic pay, hoping it will boost salaries and help offset rising prices.
DA, which gets updated twice a year based on inflation data, has now reached 60% of basic pay after a recent hike, prompting fresh demands for the merger under rules set by the Seventh Pay Commission.
Central government rules out DA merger
Right now, the government isn't planning any DA merger. If it did happen, about 1.15 crore central employees and pensioners would see bigger paychecks and benefits.
For now, salary changes will follow the current system while discussions continue under the new Eighth Pay Commission, with updates expected in 2027.
Unions are also pushing for better inflation-linked raises and higher minimum pay as part of these talks.