A parliamentary query put in writing on December 1, 2025, drew attention back to the two chief issues concerning the employees of central government — the 8th Pay Commission and the DA merger matter. There were many employees who looked forward to a favorable announcement, especially since inflation had pushed DA to very high levels. However, the government in its response made it clear that the 8th Pay Commission has been formally set up, but the merger of Dearness Allowance with basic pay is not on the slate for consideration at the current stage. This has resulted in the mixing of relief over the 8th CPC and disappointment about the DA merging.
Formal Constitution of 8th Pay Commission
The largest conclusion is that now the government has declared the existence of the 8th Pay Commission, which is to evaluate the pay structure, allowances, pension, and service conditions for central staff. The Terms of Reference are to see the salaries, go over the retirement benefits, and give suggestions for making things better so they match with the economic conditions. Thus, it is clear that the government employees have a new salary restructuring in the offing, definitely starting from January 2026. The DA merger is not going to be under the commission’s purview for the present.
Reason for the Expectation of DA Merger by Employees
Union representatives of workers had pressed their demand for a merger with DA more than ever before because there is a practice that when DA becomes more than fifty percent it gets merged into the basic pay in order to provide the employees with the same pay as before and also to increase the allowances. Accompaniment of the merger HRA, transport allowance, and even pension will go up because the computation of these components is based on the basic pay. The soaring inflation rate along with growing expenses meant that millions of employees and retirees were waiting for a similar relief. The question asked in Parliament on December 1 was seen as a potential watershed moment, but the government quickly dispelled that notion.
Government’s Stand: No DA Merger for Now
The Finance Ministry, however, made it clear that no such plan exists whereby they would merge DA with basic pay, thus no change in the existing pay structure which means the current pay structure will continue with DA and basic pay remaining separate. DA hikes will still occur twice a year, but employees will not see the additional benefits a merger would have brought. For pensioners, the DR (Dearness Relief) will also continue without structural changes.
What This Means for Central Government Employees
The update brings mixed news for employees:
- Good News: The 8th Pay Commission is now official, which means salary revision is guaranteed.
- Disappointment: DA merger is not being considered, thus reducing the probability of a major immediate salary jump.
- Continued Benefits: DA/DR hikes will continue as usual, and this will depend on inflation and the Consumer Price Index.
What to Expect Next
The next major development will be the recommendations of the 8th Pay Commission, expected in 12–18 months’ time. These recommendations will decide the extent to which employees are benefited through revised pay scales, fitment factor changes, and updated pension structures. Meanwhile, unions are expected to continue pressing for the DA merger especially if inflation remains high.
Also Read: New Pay Scale 2025 Announced: Big Salary Hike and Pension Boost for Central Employees…
