OROP with Merger of Fifty Percent DR for Defence Persons : Progress Report

8th CPC will be released as per general norms as on 01 January 2026. All Central Govt employees and pensioners are eagerly waiting for the information related to formation of Committee/Commission who will conduct the process of 8th CPC to revise the pay and pension structure of the Govt employees. Banks have recently got their pay revision with a satisfactory level of growth in salary.

In other hands, a large number of JCOs/OR are still waiting for proper means of OROP and agitating for the legitimate rights of the soldiers. Thousands of soldiers veterans are still protesting and showing agitation.

According to the 7th CPC recommendation whenever the DA / DR percentage comes to 50%, some allowances will be increased as per the scheduled formulas.

At present, Employees DA and pensioners DR increased to 46% from July 2023 and it is expected to be 50% by the January 2024. But all the government employees are waiting … what will be the other changes with increase of our DA to 50%?

By the time when our DA is expected to increase to 50% and when DA becomes 50%, then we know which elements are going to increase by how much. After our DA is 50%, some elements will increase by a certain percentage:

As and when DA and DR increases to 50%, all these elements will increase. of which a few are described here.

(1) Children Education Allowance (CEA)
(2) Special Allowance for Child Care
(3) Retirement Gratuity
(4) Composite Transfer Grant
(5) Cash handling allowance
(6) HRA (House Rent Allowance)
There is another allowance like this.

One by one we will all see how much all the allowances are going to increase.

When DA will reach 50% which other payments will be increased

The periodical increase in percentage of DA on basic pay and DR on Pension is traditionally based on a defined basket of goods that an average govt employee might purchase. Nevertheless, the consumption conduct of critical government personnel drastically diverge from this popular. This mismatch raises concerns that the proposed increase may not adequately address their financial needs.

Contrary to the 7th CPC reports, it is imperative to clarify that the DA will not automatically merge with the basic pay once it crosses the 50% threshold. This is because the Seventh CPC did not recommend such a merger. It is true that in the year 2004, the Central Government implemented the 5th Central Pay Commission’s recommendation to merge 50% of the dearness allowance with the basic pay, affecting both employees and pensioners.  However no such recommendations found in the report/recommendations of the 7th CPC.

You must have noticed that the 6th Pay Commission refrained from advocating a similar merger. In the other hand it has introduced a concept of delinking pay revisions from a fixed 10-year cycle, tying them to the point at which DA/DR (Dearness Allowance/Dearness Relief) crosses the 50% . This approach has been consistently upheld by the last three Central Pay Commissions, emphasizing that future pay revisions should occur when the DA/DR reaches or surpasses 50% of the basic pay of the govt employees, thereby mitigating the adverse effects of inflation.


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