8th Pay Commission – Central Government Employees DA to be Merged with Salary? Salary Hike Expected

8th Pay Commission: The central government is now about to open its coffers for central employees and pensioners, a move everyone is eagerly awaiting. The question of when the government will implement the 8th Pay Commission remains. It is expected that employees’ salaries will see a record-breaking increase after the implementation of the new Pay Commission.

Meanwhile, in a letter to Justice Ranjana Prakash Desai, Chairperson of the 8th Pay Commission, the Federation of National Postal Organizations (FNPO) has caused a stir by demanding the merger of 50% of the dearness allowance (DA) into the basic pay from January 1, 2026, and providing interim relief to central employees and pensioners. According to the central employees’ organisation, this move will provide immediate financial relief and restore purchasing power to some extent.

DA hike expected soon.

The Modi government at the centre may soon announce a DA hike, which will bring significant benefits. This time, the DA could be increased by up to 2%. Currently, central government employees receive 58% DA. This will increase the DA to 60% after the 2% increase.

To mitigate the impact of DA, government employees and pensioners are provided with DA/DR, which is based on the All India Consumer Price Index for Industrial Workers. The government revises DA twice a year, in July and January.

Although the government has stated that DA will not be merged with basic salary, many employee organisations have long demanded that DA be merged with basic salary to provide interim relief to over 10 million employees and pensioners.

Learn why the demand for DA merger is being raised.

For information, according to the FNPO, DA is directly linked to the cost of living, and its continuous increase indicates a decline in the real wages of employees. Meanwhile, rising inflation has led to a continuous increase in the prices of essential goods and services.

This has weakened the purchasing power of employees and pensioners. The employee union argues that in the past, when DA exceeded 50%, a portion of it was merged into the basic pay to balance the pay structure. The merger of DA will increase allowances, pensions, gratuities, and other retirement benefits, providing long-term financial stability to employees.

When could the new Pay Commission be implemented?

The central government’s implementation of the 8th Pay Commission remains a major question. It is expected that the 8th Pay Commission will be implemented by May 2027, which could lead to a significant salary increase. The team has begun working on the review report.