8th Pay Commission: Will DA Be Merged With Basic Pay? Here's What Govt Says

8th Pay Commission Latest News: Will the basic pay or pension be merged with dearness allowance (DA)? The Centre on Tuesday reacted to the ongoing demand from central government employees over the said merger.

What The Government Says?

In a written response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary clarified that there is currently no proposal to merge DA with basic pay. The employee associations including the National Council of Joint Consultative Machinery (NC-JCM) have kept the demand before the government arguing that the DA, now exceeding 50%, should be integrated with the basic salary, according to a report in The Times of India.

However, the government is firm on its stand, citing the 6th Pay Commission's recommendation against such a merger.

Chaudhary stated that the DA and dearness relief (DR) are designed to counteract inflation and protect the real value of salaries and pensions for central government employees and pensioners. The rates are revised every six months to align with the cost of living.

It has to be noted that 15 DA/DR instalments have been disbursed since the implementation of the 7th Pay Commission in 2016.

Finance Minister On Forming Central Pay Commission

In related news, Finance Minister Nirmala Sitharaman announced that the government has decided to form the 8th Central Pay Commission (CPC), which will benefit over 36 lakh central government employees, pensioners, and defense personnel.

While the commission's formation has been confirmed, the timeline for submitting its recommendations remains undecided and will be determined later. This development marks a significant step toward addressing the financial concerns of government employees and pensioners in the future.

Usually, the Pay Commission are established every 10 years and the recommendations of the eighth Pay Commission are expected to be implemented by 2026.