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NEW DELHI: The Union Cabinet has given its approval to the merger of 50 per cent of dearness allowance (DA) with basic pay for Central public sector enterprises (CPSE) employees following the Central Dearness Allowance (CDA) pattern pay-scales.

The decision of merging 50 per cent DA with basic pay will benefit the employees following the CDA pattern pay scales of the CPSEs, that are in a position to absorb the additional expenditure without budgetary support. Besides, the Cabinet also approved extension of merger of DA equal to 50 per cent of the existing basic pay to the CDA pattern for employees of FCI.

(This article was published in the Business Line print edition dated May 13, 2005)
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