Monday, February 24, 2014

DA merger with Basic Pay

Newspaper reports :

The Union Cabinet could approve a proposal to merge dearness allowance (DA) with basic pay, benefiting about 50 lakh central government employees and 30 lakh pensioners.
The Cabinet may also hike dearness allowance (DA) by 10 percent to 100%. 
As per practice, the DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

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