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8th Pay Commission: The Seventh Pay Commission is about to expire. The Eighth Pay Commission will be implemented from January 1, 2026. It is being said that the Dearness Allowance (DA) will be merged into the basic pay. This will create a new salary.
8th Pay Commission: Central government employees and pensioners are eagerly awaiting the 8th Pay Commission. Everyone is focused on the expected salary and pension increases. Furthermore, there’s a question about whether DA will be integrated into the 8th Pay Commission. Some media reports are making such claims. The 8th Pay Commission will be implemented from January 1, 2026, while the 7th Pay Commission will expire on December 31, 2025.
The government is currently working at a snail’s pace on the 8th Pay Commission. Consequently, there are speculations that its recommendations may only be implemented after 2027. The committee for the 8th Pay Commission hasn’t even been formed yet. Amidst this uncertainty, there’s speculation that employees and pensioners may receive some interim relief, including a further increase in dearness allowance.
Will DA be added to the basic salary?
Reports are circulating in the media that DA may be merged with the basic salary. However, the government maintains that there are no plans to merge the dearness allowance with the basic salary. Meanwhile, employee unions have repeatedly demanded the merger of DA with the basic salary, but the government has not yet taken any decision on this matter.
Typically, whenever a new pay commission is implemented, the dearness allowance is adjusted into the basic salary, and the calculation of dearness allowance starts from zero. However, given the delay in the Eighth Pay Commission, the dearness allowance may undergo several changes. Therefore, an increase in dearness allowance is expected by 2027.
DA Increase in the Seventh Pay Commission
Ahead of the festive season, the government has increased DA and DR by 3% for the period July-December 2025. This results in a 58% increase in DA and DR for employees and pensioners. This was the final revision of the Seventh Pay Commission.
The established rule states that whenever DA reaches 50%, it should be merged into the basic salary. DA reached 50% in January 2024, but the government did not merge it then. Experts believe that the government deliberately withheld this merger until the 8th Pay Commission, and may use this 50% benchmark as the basis for the calculation, rather than 61%.
The 7th Pay Commission Example
When the 7th Pay Commission was implemented in 2016, the government calculated the DA by merging the total DA at that time. The base year was also changed, resulting in a financial burden for the government. However, this time, a different approach is being considered for the calculation.
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