8th Pay Commission: Big News on Dec 1? Centre to Answer on 8th Pay Commission and DA Merger in Parliament

8th Pay Commission: On Monday, December 1, 2025, the Union Finance Ministry is set to face a crucial query in the Lok Sabha regarding two of the most pressing demands of central government employees and pensioners: the constitution of the Eighth Central Pay Commission and the merger of Dearness Allowance (DA) with Basic Pay. Millions of government staff and retirees across the country are eagerly awaiting the government’s official stance on these issues.

MP Shri Anand Bhadauria has listed a question for a written answer, directly seeking clarity from Finance Minister Nirmala Sitharaman. This parliamentary intervention addresses the growing anxieties among employees amidst persistent inflationary pressures.

What Has Been Asked in Parliament?

The series of questions posed by the MP seeks to extract a clear official position on the formation of the next Pay Commission and immediate relief measures. The specific points on which the Finance Minister is required to respond include:

• (a) Notification for 8th CPC: Whether the government has recently issued any notification regarding the constitution of the 8th Central Pay Commission.
• (b) Details of the Commission: If such a notification has been issued, the details regarding the composition and terms of reference of the proposed commission.
• (c) Proposal for DA Merger: Whether the government proposes to merge the existing Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners with the basic pay as an immediate relief measure. The question highlights that the current DA/DR mechanism is perceived to have failed in keeping pace with “real-time retail inflation” over the last three decades.
• (d) Implementation Timeline: If a DA/DR merger is proposed, the specific details and the timeline for its implementation.
• (e) Reasons for Rejection: If the government does not propose such a measure, the reasons for rejecting it.

Context of Employee Demands and DA Merger

This parliamentary question comes at a critical time when central government employee unions have been increasingly vocal about their demands. The recommendations of the Seventh Central Pay Commission were implemented on January 1, 2016. Since Pay Commissions typically have a tenure of ten years and 2026 is approaching, the clamour for setting up the next commission has been growing steadily.

Furthermore, unions argue that the Dearness Allowance, which is revised periodically to offset inflation, has crossed the threshold (often cited as 50%) that warrants its merger with the basic pay. This practice was last undertaken in 2004, prior to the implementation of the 6th Pay Commission.

A merger of DA with Basic Pay would result in:

• An immediate boost in salary.
• Higher increments.
• Enhanced retirement benefits, as these are calculated as a percentage of the basic pay.

Significance of the December 1 Response

The Finance Ministry’s response on December 1 will be closely watched by over 1 crore central government employees and pensioners. Until now, the government has maintained an official silence on both the formation of the 8th Pay Commission and the demand for DA merger.

This upcoming parliamentary answer is expected to set the tone for future negotiations and could have significant implications for the central exchequer. It remains to be seen whether the government offers any relief or clarification on these long-pending issues.