The government has clarified that the 8th Pay Commission will make major changes and revisions not only to salaries but also to pensions. This important information provided by the Finance Ministry in the Rajya Sabha has brought a sigh of relief to millions of pensioners. Find out the government’s final decision on pensions and DA under the 8th Pay Commission.
Official Seal of Pension Revision
This excellent news came when a fundamental question was answered in the Rajya Sabha. Minister of State for Finance Pankaj Chaudhary clarified in Parliament that the 8th Pay Commission’s mandate was to make recommendations not only on salaries and allowances, but also on pensions.
Previously, employee and pensioner organizations had repeatedly written to the government demanding that the pension revision be clearly mentioned in the Terms of Reference. Now, the government has made this position completely clear. This means that pensioners will definitely benefit from a significant increase in their pensions in the coming years.
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Government Denies Merger of DA
The biggest question on employees’ minds was whether the Dearness Allowance (DA) would be merged with the Basic Pay. The government has categorically denied this.
Pankaj Chaudhary told Parliament that the government currently has no proposal to merge the DA with the Basic Pay. However, employee unions have consistently demanded that when the DA exceeds 50%, it should be added to the Basic Pay. However, the government is currently not taking any steps in this direction.
Constitution of the 8th Pay Commission and Issuance of TORs
The 8th Pay Commission was formally constituted on November 3, 2025. The government has appointed a Chairman and members, and has also issued TORs (Terms of Reference). Based on these TORs, the Pay Commission will prepare its report on major changes to the pay structure, allowances, pensions, and the entire system. This formation is solid proof that the government is giving high priority to employee welfare.
What will this mean for pensioners
The formation of the 8th Pay Commission and the guarantee of pension revision have broad implications for employees and pensioners:
Pensioners’ pensions will certainly change, increasing their monthly income.
Necessary changes are also likely to be made to the pay structure.
New and transparent rules will also be introduced for allowances, bringing clarity to the financial system.
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