8th Central Pay Commission Notified, But No DA Merger With Basic Pay: Government Clarifies in Lok Sabha

8th Central Pay Commission Notified, But No DA Merger With Basic Pay: Government Clarifies in Lok Sabha

A recent update has been issued regarding the long-awaited 8th Central Pay Commission (8th CPC) and the demand for merging Dearness Allowance (DA) with basic pay.

On December 1, 2025, the Union Government officially stated in the Lok Sabha that there is currently no proposal to merge DA/DR with basic pay.

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Responding to Unstarred Question No. 212 raised by MP Shri Anand Bhadauria, Minister of State for Finance Pankaj Chaudhary confirmed that the Government of India has already notified the constitution of the 8th Central Pay Commission through a resolution dated November 3, 2025.

The notification includes details on the composition and terms of reference of the commission.

However, the government has rejected demands for DA merger, a relief measure widely sought by Central Government employees and pensioners who are struggling with inflation. The last DA merger took place in 2004, before the implementation of the 6th CPC.

The government also clarified that DA and Dearness Relief (DR) are already revised every six months, based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), in order to protect salaries and pensions from inflation.

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This clarification comes as over one crore employees and pensioners were hopeful that the government might consider merging DA with basic pay once the percentage reaches significant levels.

Employee unions argue that DA alone is not keeping up with real-time inflation, especially in the last three decades.

While the approval of the 8th CPC, the decision to keep DA as a separate component has left mixed reactions among the central government employees. With the 7th CPC in effect since January 2016, employees now await further updates from the newly constituted pay commission.

The coming months will determine how quickly the 8th CPC submits its report and what changes it may recommend for the next pay revision cycle starting January 1, 2026.