8th Pay Commission — Will 50% DA Be Merged With Basic Salary? Know here

8th Pay Commission: Central employees are looking forward to the implementation of the recommendations from the Eighth Pay Commission. Although it will take about 18 to 20 months for the government to receive these recommendations, calls for interim relief have started to surface. The Federation of National Postal Organizations (FNPO) has even sent a letter to Justice Ranjana Prakash Desai, the Chairperson of the 8th Central Pay Commission, regarding this matter.

What does the letter contain?

The letter from the FNPO requests interim relief for central government employees and pensioners. They are asking for a merger of 50 percent of the dearness allowance (DA) into the basic salary and pension, starting from January 1, 2026. FNPO General Secretary Shivaji Vasireddy emphasized that this action is crucial due to the ongoing rise in inflation and the decrease in real wages. This merger would offer immediate financial support to millions of employees and pensioners.

In the letter, Vasireddy pointed out that the DA has seen a significant increase over the years because of persistent inflation. The ongoing rise in the prices of essential goods and services has placed considerable strain on employees’ household finances. He mentioned that the DA is closely tied to the cost of living, and its continuous increase shows that the current basic salary structure does not accurately reflect the actual inflation.

Formed last year

It’s important to highlight that the central government provides dearness allowance to its employees and pensioners to help counteract the effects of inflation. The recommendations from the Seventh Pay Commission were valid until December 31, 2025, but the government has now also set up the Eighth Pay Commission. The announcement for the formation of the Eighth Pay Commission was made in January 2025, and in November, the decision was made regarding who would lead the committee.

Meanwhile, in the first week of February 2026, the Pay Commission launched its website. It is seeking suggestions from stakeholders through this website. If all goes well, the Pay Commission will submit its report to the government within 18 months. The government will then decide whether to implement the Pay Commission’s recommendations in letter and spirit.

The employees’ organization also stated that the 8th Pay Commission’s recommendations may take time to be implemented. In the meantime, employees are facing persistent inflation, so the merger of 50 percent of DA into basic pay should be implemented as an interim relief, which can then be adjusted according to the Commission’s final recommendations.