8th Pay Commission : At present, Central Government employees and pensioners are eagerly waiting for the 8th Pay Commission. Their main concern is how much their salary and pension will increase once it is implemented. Another important question is whether the Dearness Allowance (DA) will be merged with the basic salary in this Pay Commission. Let’s understand all the details below.
It should be noted that central employees and pensioners are anxiously waiting for the 8th Pay Commission. They are curious about the possible rise in their salary and pension after its implementation. Moreover, many are wondering if, this time too, the Dearness Allowance will be merged with the basic salary.
According to some media reports, the 8th Pay Commission may come into effect from 1 January 2026, while the 7th Pay Commission will end on 31 December 2025. However, due to the government’s slow progress, there are speculations that the new pay commission might only be implemented after 2027. So far, no committee has been formed for this purpose, which has created uncertainty among employees. In the meantime, there are expectations of a further increase in the Dearness Allowance (DA) to provide temporary relief.
8th Pay Commission : Will Dearness Allowance Be Merged with Basic Pay?
There are several claims circulating on social media suggesting that the DA might be merged with the basic salary. However, the government has clarified that no such scheme has been finalized yet. Employee unions have repeatedly demanded this merger, but the government has not taken any official decision so far.
Generally, whenever a new Pay Commission is implemented, the Dearness Allowance is merged into the basic salary, and the DA calculation starts again from zero. However, given the possible delay in the 8th Pay Commission, the DA rate is expected to change several times before then. It is estimated that by 2027, there could be multiple DA hikes.
8th Pay Commission : DA Hike Under the 7th Pay Commission
The government recently announced a 3% increase in DA and DR (Dearness Relief) for the period July 2025 – December 2025, raising the total DA/DR to 58%. This was the final revision under the 7th Pay Commission.
According to established rules, when the DA reaches 50%, it should be merged into the basic salary. The DA had already touched the 50% mark in January 2024, but the government did not merge it at that time. Experts believe the government intentionally delayed the merger to align it with the 8th Pay Commission, possibly using 50% as the benchmark instead of 61%.
Example from the 7th Pay Commission
When the 7th Pay Commission was implemented in 2016, the government had merged the total DA applicable at that time into the new basic pay. The base year for calculation was also changed. This increased the government’s financial burden, but this time, the authorities are reportedly considering a different approach.
How Dearness Allowance Is Calculated
The calculation of the DA is based on the AICPI-IW Index (All India Consumer Price Index for Industrial Workers). This calculation uses a base year, which acts as a reference point for comparing inflation. Currently, the base year is 2016, which was set during the 7th Pay Commission.
When the 8th Pay Commission comes into effect on 1 January 2026, the government may update the base year to 2026. Changing the base year essentially means that DA calculations will restart from a new series, much like resetting the score in a game.