8th Pay Commission: DA hike four times a year and merger with basic pay at 25%

Ahead of the 8th Pay Commission meeting in Chandigarh, employees have put forward a significant demand: they have proposed increasing the Dearness Allowance (DA) every three months and merging 25% of the DA into the basic pay.

After Chennai and Puducherry, the 8th Pay Commission is now heading to Chandigarh. The Commission is scheduled to meet there from August 16 to 18. During this meeting, various employee unions and pensioners’ associations from North India will present their demands to the Commission. Issues such as the fitment factor, DA, and House Rent Allowance (HRA) are likely to be raised. A subsequent meeting is scheduled for October 7–8 in Bengaluru.

DA hike four times a year

Under the current system, the Dearness Allowance (DA) for central government employees is revised twice a year (in January and July). However, in light of rising inflation, several employee organizations have demanded that the DA be reviewed four times a year—meaning every three months—to provide some relief from the impact of inflation.

Merger with basic pay at 25% DA

Organizations, including the National Council (NC-JCM), have demanded that the Dearness Allowance (DA) be merged with the basic pay once it reaches the 25% mark. This would mean that future calculations for salaries and allowances like HRA and TA would be based on the enhanced base pay, leading to a significant increase in overall remuneration. It is worth noting that the DA for central government employees currently exceeds 60%.

Other employee demands

Employees are demanding financial upgradation (under the MACP scheme) every five years instead of the current ten-year interval.
Some organizations have demanded the implementation of a 3.83 fitment factor to ensure a corresponding increase in basic pay.
There is a demand to increase the family unit size from the three members considered under the 7th Pay Commission to five members for the 8th Pay Commission.
It should be noted that, at this stage, employee organizations are submitting their demands and suggestions. No final decision has been taken on this yet. The commission may submit its final report to the government by May-June 2027. However, it will be deemed effective from January 1, 2026.