8th Pay Commission Update: The Central Government has officially approved the Terms of Reference (ToR) for the 8th Pay Commission, and since then, government employees and pensioners across the country have been eagerly waiting for clear answers. Many questions were circulating—especially regarding the merger of Dearness Allowance (DA) with basic salary and whether pension revision is included in the commission’s scope. The government has now responded to these concerns in Parliament, putting an end to the confusion.
No Plan to Merge DA or DR With Basic Salary
Responding to a written question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that the government is not considering any proposal to merge DA (for employees) or DR (for pensioners) with the basic pay.
He stated that DA/DR will continue to be revised every six months to offset the impact of inflation, as per the existing rules. This means employees should not expect a sudden boost in basic salary through DA–DR merger.
Pension Revision Will Be Part of 8th Pay Commission
One of the biggest concerns for nearly 70 lakh pensioners was whether the 8th Pay Commission would include pension revision in its mandate. The doubt began because the word “pension” did not appear clearly in the ToR document.
To end the speculation, the Ministry of Finance clarified in the Rajya Sabha that the 8th CPC will indeed make recommendations on salary, allowances, and pension, just like previous commissions. This official confirmation has brought relief to lakhs of retirees and family pensioners.
When Will the 8th Pay Commission Be Implemented ?
Financial experts believe that pay commissions generally take 1–2 years from formation to implementation.
For example:
- 7th CPC was formed in 2014 and implemented in 2016 (around 29 months).
- 6th CPC took nearly 22 months.
Looking at these timelines, analysts expect the 8th Pay Commission recommendations to be implemented before 2027. The government has already begun collecting data and preparing inputs, indicating that the process is moving steadily.
What It Means for Employees and Pensioners
- Salary hike expected once recommendations are approved
- Pension revision confirmed under 8th CPC
- No merger of DA/DR with basic salary
- Implementation likely between 2026 and 2027
The government’s clarification has provided a clear picture of what to expect. While DA–DR merger is ruled out, the assurance of pension revision and timely implementation has offered major relief to millions of central government employees and pensioners.
