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8th Pay Commission: Big update regarding DA, discussion on merger intensified again

by Rajiv Mishra
May 16, 2026
in Business
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8th Pay Commission: Big update regarding DA, discussion on merger intensified again
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Discussions regarding the 8th Pay Commission have intensified among central government employees and pensioners. Especially there is a murmur once again regarding the possible merger of Dearness Allowance (DA). It is believed that in the framework of the upcoming Pay Commission, consideration may be given to including or partially adjusting DA in the basic salary.

According to sources, the issue of how to balance the real income of employees amid rising inflation may be an important issue in the recommendations of the Pay Commission. In the current system, DA is revised every six months according to the inflation rate, but for a long time there has been a demand to merge it with the basic pay so that the pay structure can become more simple and transparent.

Experts believe that if DA is included in the basic pay, it will not only bring a major change in the salary structure, but will also have a direct impact on other allowances and pension benefits in future. However, the final decision on this will be possible only after the recommendations of the 8th Pay Commission and the approval of the government.

Employee organizations say that considering the current inflation rate, the importance of DA is continuously increasing. He argues that when DA reaches the level of 50 per cent or more, the tradition of merging it with the basic salary has been seen before. On this basis, this demand is once again getting strengthened.

On the other hand, economic experts say that DA merger can also have a direct impact on the government treasury. If it is included in the basic pay, the basic salary of the employees will increase, which will also put additional burden on pension and other allowances. Therefore the government may try to adopt a balanced approach on this subject.

Official notification regarding the 8th Pay Commission is still awaited, but it is believed that the process of its formation may speed up in the coming time. As soon as the commission is constituted, a detailed study on pay structure, allowances and pension reforms will be initiated.

At present, the eyes of the working class are fixed on the next step of the government. The ongoing discussions regarding DA merger have once again brought the Pay Commission into the limelight. Now it remains to be seen what the 8th Pay Commission recommends on this and in what form the government accepts it.

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