8th Pay Commission BIG Update: Will DA/DR merge with basic pay? Here’s what Finance Minister said

Union Minister of State for Finance Pankaj Chaudhary said DA/DR will not merge with the basic pay.

Add DNA as a Preferred Source

General TRENDING NOW

8th Pay Commission latest updates: As the talks of the 8th Central Pay Commission has been ongoing, the Union Minister of State for Finance Pankaj Chaudhary on Monday said that the union government has notified the constitution of the 8th Central Pay Commission that presently there is no proposal to merge the existing dearness allowance (DA) or dearness relief (DR) with the basic pay.  

General What has the government said on DA/DR merger in 8th Pay Commission? 

Answering a question in Lok Sabha on December 1, Monday, Chaudhary said, “No proposal regarding merger of the existing dearness allowance with the basic pay is under consideration with the government at present. In order to adjust the cost of living and to protect basic pay/ pension from erosion in real value on account of inflation, the rates of DA/ DR are revised periodically every six months on the basis of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by Labour Bureau, Ministry of Labour and Employment.”  

He further said the government has notified Resolution dated November 3, 2025, for the constitution of the Eighth Central Pay Commission, a copy of which is enclosed at Annexure-1. Lok Sabha member from the Samajwadi Party, Anand Bhadauria asked for clarity on what plans the Government has to provide immediate relief for employees and pensioners facing high inflation over the last three decades. 

As of now, both DA and DR include 55% of the basic pay or pension, respectively. Days before Diwali on October, the government increased the DA/ DR by 3% to reach 55%.  

Dearness allowance (DA) is for central government employees, while dearness allowance (DR) is given to pensioners. The 8th Pay Commission’s decision will directly impact more than 5 million employees and over 6.5 million pensioners. 

The Union Cabinet, chaired by Prime Minister Narendra Modi have approved the Terms of Reference (ToR) of the 8th Central Pay Commission. This Commission will review and recommend changes to the salaries, pensions, and allowances of nearly 50 lakh Central Government employees, including defence staff, and around 69 lakh pensioners.

Find your daily dose of All Latest News including Sports News, Entertainment News, Lifestyle News, explainers & more. Stay updated, Stay informed- Follow DNA on WhatsApp.