Lok Sabha QA : No proposal to merger of dearness allowance with Basic Pay

GOVERNMENT OF INDIA - MINISTRY OF     FINANCE - LOK SABHA

UNSTARRED     QUESTION NO    859 / ANSWERED ON      25.02.2011
DA OF CENTRAL GOVERNMENT EMPLOYEES

859 .    Smt. P. JAYA PRADA NAHATA
NEERAJ SHEKHAR
YASHVIR SINGH

Will the Minister of FINANCE  be pleased to state:-

(a) whether Government has plans to increase dearness allowance effective from January,2011 for Central Government employees with a rate that commensurates with the inflationary trends and plights of working class in the past few months;(b) if so, the details thereof and if not, the reasons therefore;

(c) whether Government has any proposals to declare DA as Dearness Pay when it will cross 50 per cent, as it was done during the 5th Pay Commission;

(d) if so, the details thereof; and

(e) if not the reasons therefore?

ANSWER

MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARIAN MEENA)

(a) Increase in Dearness Allowance payable to Central Government employees with effect from January, 2011 will be worked out on basis of accepted formula which is based on the recommendation of 6th Central Pay Commission.

 No proposal to declare DA as dearness pay, after DA crosses 50% is under consideration of the Government. The Sixth Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.8.2008.