Family finances of government employees are being squeezed from all sides as inflation is rising at its fastest level in last four years. How can government employees cope with raising inflation besides mergerof 50 percent dearness allowance (DA) to basic pay.
High prices of day-to-day goods make it difficult for government employees to afford even the basic commodities in their lives.
The Sixth Pay Commission did not talk about merger. As a result, with the continuous increase of dearness allowance, this has now reached up to 100 per cent of basic pay but the government did not merged 50 percent dearness allowance to basic pay on the pretext of sixth pay panel recommendation.
Earlier, the DA was merged with basic pay, only after it touched 50 per cent of the basic pay on the recommendation of fifth central pay panel.
The commission will also to look at the revision of pension for those who have retired prior to the date of effect of these recommendations.
However, the decision regarding merger of 50 per cent dearness allowance to basic pay will be taken only after theSeventh Pay Commission gives its interim recommendations under the terms of reference for the commission before submitting of its final report within 18 months of the date of its constitution.
The merger of 50 percent DA to basic pay will lead salaries rising by up to 30 per cent, which will cope with the present living cost of government employees.