8th Pay Commission: Will DA Be Removed or Merged into Basic Pay? Government Issues Official Clarification

The Central Government has issued a major clarification for central government employees and pensioners regarding the 8th Pay Commission and the future of Dearness Allowance (DA) and Dearness Relief (DR).

The government has officially notified the 8th Pay Commission, but at the same time, the Finance Ministry clarified that there is currently no proposal to merge DA or DR into basic pay, ending months of speculation and social media rumours.

What Exactly Did the Government Say?

During the winter session of Parliament, MP Anand Bhadauria raised two key questions:

1. Has the 8th Pay Commission been officially notified?

2. Is the government considering merging DA into basic pay?

Responding on behalf of the Finance Ministry, Minister of State Pankaj Chaudhary confirmed:

• The notification for the 8th Pay Commission was issued on 3 November 2025.

• There is no proposal to merge DA/DR with basic pay at this time.

The commission members include:

• Justice Ranjan Prabha Desai – Chairperson

• Prof. Pulak Ghosh – Part-time Member

• Pankaj Jain – Member Secretary

Rumours of DA/DR Merger Finally End

For months, there were widespread discussions that from 2026 onwards, DA and DR might stop being increased and instead be permanently merged with basic salary under the new pay structure.

However, the government has now officially denied these claims, confirming:

• DA and DR will continue to be revised every six months

• The revision will be based on the AICPI-IW inflation index

• No change in the current system at present

This brings relief to lakhs of government employees and pensioners.

What Does This Mean for Employees’ Salaries?

Since DA/DR will not be merged with basic pay right now:

• Basic salary will remain unchanged

• DA/DR will continue to increase twice a year

• There will be no immediate change in:

  • Pension

  • PF (Provident Fund)

  • HRA (House Rent Allowance)

  • Other allowances

This is because all these components are calculated based on basic pay.

Key Highlights

Conclusion

The government has made it clear that DA and DR will continue as usual and will not be merged into basic pay, ending speculation among employees.
The 8th Pay Commission is now active, and recommendations are expected to be finalized ahead of January 2026, when it is likely to be implemented.