Parliament to ask Government on 8th Pay Commission and DA Merger on December 1: Major Relief Hopes for Central Government Employees

Parliament to ask Government on 8th Pay Commission and DA Merger on December 1: Major Relief Hopes for Central Government Employees

Central government employees and pensioners are waiting for December 1, 2025, as the Union Finance Ministry is set to respond to important questions on the 8th Central Pay Commission (CPC) and the merger of Dearness Allowance (DA) with basic pay.

The written question, raised by MP Shri Anand Bhadauria in the Lok Sabha, directly addresses two major concerns that have been repeatedly highlighted by staff unions amid rising inflation.

Finance Minister Nirmala Sitharaman will be required to clarify whether a notification for the constitution of the 8th CPC has been issued, and if so, the details regarding its members and terms.

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The demand is driven by the fact that the Seventh Central Pay Commission recommendations have been in effect since January 1, 2016, and the typical 10-year cycle ends in 2026.

The question also focuses on whether the government intends to merge DA and Dearness Relief (DR) with basic pay as an immediate relief measure. Employee unions argue that the DA mechanism has failed to match “real-time retail inflation” over the last three decades, and since DA is already nearing high levels, merging it with basic pay could provide direct salary improvement and strengthen retirement benefits like pension and gratuity.

DA merger was last implemented in 2004 before the rollout of the 6th CPC. Since then, workers have been pushing for the reinstatement of this practice, especially now when inflation remains a major concern. Over one crore central employees and pensioners are viewing this Parliamentary reply as a significant development that might decide the timeline for future pay reform discussions.

The government has not officially commented on either the 8th CPC setup or DA merger until now, making the upcoming response highly anticipated. What the Finance Ministry states on December 1 could shape the financial expectations of millions and set the course for future negotiations about salaries and pensions in the government sector.