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DA Merger Big Update: FNPO Seeks 50% Dearness Allowance Merge into Basic Pay

Vikram Singh
By Vikram Singh
3 min read
Published: 28 Feb 2026
DA Merger Big Update: FNPO Seeks 50% Dearness Allowance Merge into Basic Pay
8th Pay Commission DA Merger News: There’s some good news for government employees and pensioners. The Federation of National Postal Organizations (FNPO) has written a formal letter to Justice Ranjana Prakash Desai, Chairperson of the 8th Pay Commission, strongly demanding interim relief.
The letter, dated February 27, 2026, demands that 50% of dearness allowance (DA) be incorporated into the basic pay in light of rising inflation. If the government approves this proposal, the salaries of millions of employees and pensioners will see a significant increase starting January 1, 2026. Let’s understand in detail the mathematics behind this demand and how it will impact your pocket.

FNPO’s Main Demand

Federation of National Postal Organizations General Secretary Shivaji Vasireddy has strongly appealed to the government that the implementation of the final recommendations of the 8th Pay Commission may take a long time, and therefore, it is imperative to provide immediate financial support to employees. The letter clearly states that the rapid inflation rate has significantly reduced the real purchasing power of employees.
8th Pay Commission
8th Pay Commission
Merging 50% DA into basic pay will not only result in a significant increase in monthly salaries, but will also automatically increase other allowances such as HRA and travel allowance. FNPO strongly argues that this step will ensure economic dignity and respect for millions of families across the country who have long been awaiting a fair pay revision.

Reference to Previous Pay Commissions

In his letter, Shivaji Vasireddy has strongly presented historical facts and explained that this is not a new or unreasonable demand, but that similar provisions have been in place under previous pay commissions. For example, during the Third Pay Commission, when dearness allowance exceeded 100% of the basic pay, it was added to the basic pay.
Similarly, during the Fourth and Fifth Pay Commissions, the concept of “dearness pay” was implemented when inflation exceeded a certain threshold. Similarly, now that the current DA has crossed the psychological threshold of 50% and reached 58%, employee organizations argue that merging it is completely correct from both technical and moral perspectives.

Dearness Allowance and Your Household Budget

Dearness allowance (DA) is determined based on the All India Consumer Price Index, and the government revises it twice every year in January and July to ensure that employees are not burdened by rising prices.
8th Pay Commission Update
8th Pay Commission Update
Currently, central employees receive DA at the rate of 58%, and there is a strong possibility that a further 2% increase may be announced soon, taking it to 60%. Employee unions argue that when DA exceeds 50%, it should be merged into the basic salary so that employees can fully benefit from retirement benefits and future savings.

Current Status of the 8th Pay Commission

The process of forming the 8th Pay Commission is currently progressing steadily, and employee unions from various departments are submitting their charter of demands to the Commission. The year 2026 is a crucial year for government employees, as the Commission’s main framework and fitment factor will be discussed this year. This initiative, initiated by the Postal Department unions, is now uniting employee unions from other government departments as well.
If the government accepts this proposal for DA merger as interim relief, it will be a major jackpot for employees before the full implementation of the 8th Pay Commission. All eyes are now on the next official meeting between the Finance Ministry and the 8th Pay Commission, where a major decision may be taken.
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