Will DA, DR merged with basic pay under 8th Pay Commission - Govt clarifies its stand in parliament
The Centre has formally notified the 8th Central Pay Commission, ending months of speculation. The government also clarified in Parliament that it is not considering any proposal to merge DA or DR with basic pay. This has reset expectations among employees awaiting salary and pension revisions.
- Dec 3, 2025,
- Updated Dec 3, 2025 1:49 PM IST
The Union government has officially notified the 8th Central Pay Commission, putting months of speculation to rest. However, in a significant clarification, the Finance Ministry has informed Parliament that it is not considering any proposal to merge Dearness Allowance (DA) or Dearness Relief (DR) with the basic pay at this stage.
Central government employees and pensioners had been anticipating two major developments—confirmation of the 8th Pay Commission and a possible restructuring of salary components through DA merger. The government’s statement, issued during the opening day of the Winter Session, settles one part of the debate while closing the door on the other.
8th CPC, DA merger
Lok Sabha MP Anand Bhadauria sought concrete answers from the Centre on two key points:
Whether the 8th Pay Commission had been formally notified.
Whether the government was considering merging DA with basic pay to offset rising inflation.
Responding on behalf of the Finance Ministry, Minister of State Pankaj Chaudhary confirmed that the 8th Central Pay Commission has been constituted through a notification dated November 3, 2025. The commission will be headed by Justice Ranjan Prabha Desai, with Prof Pulak Ghosh serving as Part-time Member and Pankaj Jain as Member-Secretary.
However, Chaudhary emphasized that there is no proposal to merge DA/DR with basic pay, ending months of speculation circulating on social media and within employee unions.
Speculation on DA/DR merger
For several months, rumours suggested that the government might stop increasing DA and DR after 2026 and instead merge them into the 8th CPC framework. This had created uncertainty among employees who depend heavily on semi-annual DA revisions for inflation protection.
The government has now made it clear that DA and DR will continue as usual, increasing twice a year based on the AICPI-IW inflation index, ensuring that employees receive inflation-linked relief as before. Union leaders say this clarity will help prevent misinformation and avoid unnecessary anxiety among the workforce.
What this means for employees and pensioners
With DA and DR not merging into the basic pay, the existing salary structure remains unchanged. This means:
Basic pay will not rise until the 8th Pay Commission recommendations are implemented.
DA/DR hikes will continue every six months as a percentage of basic pay.
Since pension, PF, HRA, and several allowances are calculated on basic pay, these components will not see any meaningful increase for now.
Employees will have to wait for the 8th CPC report to understand how their future salary, pension fitment, and allowances may be revised.
With the commission now in place, attention shifts to its recommendations—expected to shape government pay scales for the next decade.
The Union government has officially notified the 8th Central Pay Commission, putting months of speculation to rest. However, in a significant clarification, the Finance Ministry has informed Parliament that it is not considering any proposal to merge Dearness Allowance (DA) or Dearness Relief (DR) with the basic pay at this stage.
Central government employees and pensioners had been anticipating two major developments—confirmation of the 8th Pay Commission and a possible restructuring of salary components through DA merger. The government’s statement, issued during the opening day of the Winter Session, settles one part of the debate while closing the door on the other.
8th CPC, DA merger
Lok Sabha MP Anand Bhadauria sought concrete answers from the Centre on two key points:
Whether the 8th Pay Commission had been formally notified.
Whether the government was considering merging DA with basic pay to offset rising inflation.
Responding on behalf of the Finance Ministry, Minister of State Pankaj Chaudhary confirmed that the 8th Central Pay Commission has been constituted through a notification dated November 3, 2025. The commission will be headed by Justice Ranjan Prabha Desai, with Prof Pulak Ghosh serving as Part-time Member and Pankaj Jain as Member-Secretary.
However, Chaudhary emphasized that there is no proposal to merge DA/DR with basic pay, ending months of speculation circulating on social media and within employee unions.
Speculation on DA/DR merger
For several months, rumours suggested that the government might stop increasing DA and DR after 2026 and instead merge them into the 8th CPC framework. This had created uncertainty among employees who depend heavily on semi-annual DA revisions for inflation protection.
The government has now made it clear that DA and DR will continue as usual, increasing twice a year based on the AICPI-IW inflation index, ensuring that employees receive inflation-linked relief as before. Union leaders say this clarity will help prevent misinformation and avoid unnecessary anxiety among the workforce.
What this means for employees and pensioners
With DA and DR not merging into the basic pay, the existing salary structure remains unchanged. This means:
Basic pay will not rise until the 8th Pay Commission recommendations are implemented.
DA/DR hikes will continue every six months as a percentage of basic pay.
Since pension, PF, HRA, and several allowances are calculated on basic pay, these components will not see any meaningful increase for now.
Employees will have to wait for the 8th CPC report to understand how their future salary, pension fitment, and allowances may be revised.
With the commission now in place, attention shifts to its recommendations—expected to shape government pay scales for the next decade.