The Staff Side of the National Council-Joint Consultative Machinery (NC-JCM) has proposed six major changes to the way Dearness Allowance (DA) is calculated under the upcoming 8th Pay Commission.
The recommendations, shared in their memorandum submitted before the panel earlier this month, aim to better reflect rising inflation and improve salary adjustment for central government employees and pensioners.
As reported, the Staff Side has sought a revision in the base year for calculating DA, arguing that the current formula does not adequately capture present-day consumption patterns and price rise.
ALSO READ: 8th Pay Commission: How Rs 69,000 Minimum Wage Push Compares To Past Fitment Factors
The proposals also include changes in the weighting structure of the Consumer Price Index (CPI), inclusion of a broader basket of essential goods and services, and a more realistic method to assess inflationary trends.
The employee representatives have further recommended that DA calculation should be made more transparent and scientific to ensure fair compensation amid fluctuating market conditions.
Another key demand is the merger of DA with basic pay once it crosses a certain threshold, a long-standing demand raised by employee unions in previous pay commissions as well.
Reports said the Staff Side has also proposed periodic reviews of the DA formula to prevent outdated parameters from affecting salary revisions.
The recommendations are expected to be discussed when the Centre formally begins consultations on the 8th Pay Commission framework.
The move comes amid growing expectations among lakhs of central government employees and pensioners regarding salary restructuring and inflation-linked benefits under the next pay commission.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.