FM clarification on DA merger with basic pay

The below explanation was presented by the Minister of State for Finance Shri.Namo Narain Meena to the questions regarding merger of DA / DR with basic pay of Central Government employees and Pensioners in the Parliament on 14.12.2012.

Q: Whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners and the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

Reply:Yes, A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness AHowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such. 

The 6th Central 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 29.08.2008.