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Govt may merge DA, basic pay of PSU staff

Press Trust of India  |  New Delhi 

The central government has mooted a proposal to merge dearness allowance(DA) with the basic salary paid to public sector employees. The department of public enterprises has moved a note for consideration by the cabinet, which is likely to discuss the issue next week, official sources said.

The proposed merger would be implemented only in PSUs that have the capacity to pay the enhanced amount. The centre will not provide any additional funds for the purpose, officials added.

The action comes in the backdrop of the decision by employees of some of the biggest PSUs like NTPC, SAIL and Coal India to go on strike on 12 September if their demands, which include DA merger, were not met.

Another proposal to constitute a commission to increase the pay scales of PSU employees has also been sent to the Prime Minister's Office(PMO) for approval. Meanwhile, the notification for setting up the Sixth Pay Commission for central government employees is also expected in a day or two.

First Published: Wed, September 06 2006. 13:41 IST