8th Pay Commission: Will DA and Basic Pay be merged? FM clarified the situation, saying, "There is no such..."
8th Pay Commission: The central government, led by Prime Minister Narendra Modi, is steadily moving forward to implement the 8th Pay Commission. Meanwhile, during the Winter Session of Parliament, the government clarified the situation by answering questions that the central government would not increase the Dearness Allowance (DA) and Dearness Relief (DR) under the Eighth Pay Commission and would merge them with the Basic Pay. Let's find out what the government said on this matter.
Its implementation will directly benefit approximately 5 million central government employees and 6.9 million pensioners.
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Government said, "No merger..."
Responding to this question on behalf of the government in the Lok Sabha on Monday, Minister of State for Finance Pankaj Chaudhary clarified that the central government does not have any proposal under consideration to merge the dearness allowance of central employees with the basic pay under the 8th Pay Commission.
Indeed, it was being speculated that DA-DR would be merged into the basic pay without an increase. Previously, the government had categorically rejected such speculation on the social media platform Twitter (now X).
When will the 8th Pay Commission be implemented?
A recent report released by Kotak Institutional Equities stated that the 8th Pay Commission could be implemented in late 2026 or early 2027. Last October, former Supreme Court judge Ranjana Prakash Desai was appointed chairperson to implement the 8th Pay Commission. Union Minister Ashwini Vaishnav also stated that its recommendations could be implemented from January 1, 2026.
More than 1 crore will benefit, salary increase this much!
It is noteworthy that after the implementation of the 8th Pay Commission, more than 5 million central employees and 6.9 million pensioners across the country will benefit. If reports regarding the estimated salary increase are to be considered, the basic salary of employees could increase by more than 30%.
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Summary
Under the new Pay Commission, the minimum basic salary could increase from ₹18,000 to approximately ₹30,000. The fitment factor is estimated to be around 1.8, which will benefit employees by 13%. Recently, a report by brokerage firm Ambit Capital also claimed that this could lead to a 30-34% increase in salaries and pensions.
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