The discussion about the 8th Pay Commission has picked up pace as December begins, creating anticipation among central government employees. One of the most talked-about topics is whether the Dearness Allowance (DA) will be merged with the basic salary. Recent statements from the government have now clarified the situation.
No DA Merger in Basic Pay
Contrary to rumors circulating online, the government has confirmed that there are no plans to merge DA or Dearness Relief (DR) with basic pay. Officials explained that merging DA into basic salary would significantly change the salary structure and create additional financial obligations for the government. While employees have been asking for DA-DR merger for years, the government assures that DA will continue to be reviewed periodically to provide relief against inflation.
Timeline for 8th Pay Commission
The 8th Pay Commission is expected to be implemented from January 1, 2026, though full implementation may take up to 2028. This means employees and pensioners should not expect any DA merger before the new pay commission comes into effect. However, regular DA hikes are likely to continue based on inflation rates.
Current DA and Financial Impact
Currently, the DA for central employees has reached 58% of basic pay. Experts warn that merging DA into basic salary could put a heavy burden on government finances, potentially increasing expenditure by over 0.5% of GDP. This is one of the main reasons why the government has decided not to pursue the merger.
Expected Salary Increase Under 8th Pay Commission
While DA merger is not happening, the 8th Pay Commission is still expected to benefit employees significantly. Reports suggest that the fitment factor could be around 2.46, potentially increasing average salaries by 30-40%. More than 50 lakh central employees and 65 lakh pensioners are likely to benefit directly from the revised pay structure.
DA Hike and Financial Advice
With current inflation around 5.49%, the next DA increase is expected to be approximately 3% by March 2026. Experts advise employees to focus on savings, investments in mutual funds, and creating side income sources to cope with rising prices, as regular salaries may remain stable until the 8th Pay Commission is fully implemented.
Conclusion
In short, while the DA merger into basic pay will not happen, the 8th Pay Commission still promises significant salary hikes for central employees. Employees should remain informed, avoid rumors, and plan finances wisely until the new pay commission is fully in effect.
