In a salary increase for central government employees ahead of the 8th Pay Commission, the Union cabinet approved a 2 per cent increase in dearness allowance.

After this revision, the dearness allowance (DA) will rise from 53 per cent to 55 per cent. DA is provided to government employees to compensate them against price rise because of inflation.

Following a 3 per cent hike in October last year, the DA increased to 53 per cent of basic pay in the last update.

The government’s 8th Pay Commission, which was approved by the Centre in January this year, revised the wages and allowances of central government employees.

The formal constitution of the commission, which involves the appointment of a chairman and at least two members, is expected soon. Although DA and DR will continue to be revised on a biannual basis, this would probably be the final revision before the commission begins its deliberations with various stakeholders.

Employees forums have sought the amalgamation of the two components with basic salary before the next Pay Commission report is implemented.

Under the 5th Pay Commission, the rule was to merge basic pay with DA once key allowance crosses 50 per cent.

The government integrated DA with basic pay in 2004. However, this practice was discontinued under the subsequent 6th and 7th Pay Commissions.