Daijiworld Media Network – New Delhi

New Delhi, Mar 28: In a prelude to the 8th pay commission, the Union Cabinet on Friday approved a 2 per cent hike in dearness allowance (DA) for central government employees, increasing it from 53 per cent to 55 per cent.

DA is provided to government employees to counter inflation and rising living costs. The latest revision follows a 3 per cent hike in October last year, which had raised DA to 53 per cent of basic pay.

The 8th pay commission, approved by the Centre in January this year, will oversee the revision of wages and allowances for central government employees. The formal constitution of the commission, including the appointment of a chairman and two members, is expected soon.

While DA and DR (Dearness Relief for pensioners) will continue to be revised biannually, this is likely the last revision before the commission starts consultations with various stakeholders.

Employee forums have urged the government to merge DA with basic salary before the next pay commission report is implemented. Under the 5th pay commission, DA was merged with basic pay once it crossed 50 per cent. This practice was last followed in 2004 but was discontinued under the 6th and 7th pay commissions.