8th Pay Commission Update, Government Confirms No DA Merge with Basic Pay

The Ministry of Finance has clarified that there is no current proposal to merge the existing Dearness Allowance (DA), which is currently at 58 per cent, with the basic pay of central government employees and pensioners. This is the first major clarification since the constitution of the 8th Central Pay Commission (8th CPC).

On December 1, 2025, The statement was made, and in its response, Minister of State for Finance Pankaj Chaudharya had asked a question in the Lok Sabha about whether the government is planning to merge DA (and DA/DR for pensioners) with basic pay, given the recent jump in DA beyond 50 per cent and rising inflation. As per official records, the government also confirmed that the 8th CPC has be

See Full Page