8th Pay Commission: The speculation surrounding the 8th Pay Commission has finally come to an end. The commission is already formed, and its recommendations will be implemented from January 2026. With this announcement, discussions about the possibility of merging the Dearness Allowance (DA) with the basic salary for central government employees and pensioners have resurfaced.
New Speculation as Dearness Allowance (DA) Crosses 50%
The Dearness Allowance for central government employees has currently reached 50% of the basic salary. According to the rules, when the DA reaches 50%, it is supposed to be merged with the basic salary. This rule was followed during the Fifth Pay Commission, but this merger did not happen in the Sixth and Seventh Pay Commissions. Therefore, there is a lot of curiosity among the employees about what will happen in the Eighth Pay Commission.
Demands of Employee Organizations
Various employee organizations have long been demanding the merger of DA with the basic salary. According to them, this will make the salary structure of the employees more stable. Not only that, but it will also have a direct impact on pension and gratuity. If the basic salary increases, employees will also get more benefits in these two areas.
Government’s Stance
Although the demand for DA merger is strong, the government has not yet made a final decision on this matter. The government has stated that there is no plan to merge the DA before the recommendations of the Eighth Pay Commission. However, this matter may be considered when the recommendations of the Eighth Pay Commission are implemented in 2026.
Potential Impact
If the Dearness Allowance merges with the basic salary, it could have several potential effects:
- Salary Increase: The basic salary of the employees will increase, which will also increase their total salary.
- Fitment Factor: If the DA is merged, it may have an impact on the fitment factor. If the fitment factor is low, the rate of salary increase may not be as expected.
- Pension and Gratuity: As the basic salary increases, the amount of retirement benefits, such as pension and gratuity, will also increase.
Overall, the Eighth Pay Commission and the merger of Dearness Allowance are very important issues for central government employees. All eyes are on what decision the government will take in this regard in the coming days.
