8th Pay Commission Holds Mumbai Meeting, Employee Unions Demand DA-Basic Salary Merger
The 8th Pay Commission has wrapped up its Mumbai meeting with employee unions, who are demanding reforms including the merger of DA with basic salary.
Mumbai, October 24 (Udaipur Kiran) : The 8th Pay Commission concluded another round of meetings with employee organisations in Mumbai on 22 and 23 October.
Earlier, the Pay Commission, chaired by Justice Ranjana Prakash Desai, had organised meetings in Delhi, Ladakh, Kolkata, Bengaluru, and several other states and union territories. In most sessions so far, employee representatives have called for substantive reforms in the fitment factor, Dearness Allowance (DA), Dearness Relief (DR), and basic salary structures.
Some unions are pressing for changes to the current system. Their demands include merging DA with basic salary when inflation reaches a certain level and revising the formula used to calculate allowances.
Previous Pay Commissions: Key Recommendations
The 5th Pay Commission recommended that whenever the Consumer Price Index (CPI) base index rises by 50%, DA should be converted into ‘Dearness Pay’. This ‘Dearness Pay’ was to be considered for all purposes, including retirement benefits. The commission also proposed that employees at all pay levels should receive 100% compensation for inflation through DA.
In contrast, the 6th Pay Commission rejected proposals to merge DA with basic salary at any stage. The commission argued that the revised pay structure already allowed for periodic adjustments in allowances and benefits based on changes in prices. The 6th Pay Commission also decided to retain the existing system of reviewing DA twice a year, rather than shifting to quarterly reviews.
The 7th Pay Commission continued with the existing method of DA calculation, stating that this formula had proven effective over many years. Accordingly, it did not recommend any major or fundamental changes to the system or its calculation methodology.
Current Demands Before the 8th Pay Commission
The Federation of National Postal Organisations (FNPO) has put forward the demand that DA should be merged with basic salary once it exceeds 25%.
Bharat Pensioners Samaj has requested that the review of DA and DR for pensioners be conducted every three months instead of the current biannual schedule. The organisation has also suggested that, after reaching a certain threshold, DR should be merged into the basic pension.
There is also a suggestion to carry out a detailed analysis and review of the method used to calculate the All-India Consumer Price Index for Industrial Workers (AICPI-IW).
The Pay Commission will now have to decide on these various recommendations and demands.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
