DA/DR Merger Off the Table: Government Confirms No Proposal Alongside 8th Pay Commission

The government has made it known that there isn’t any proposal currently to merge dearness allowance (DA) or dearness relief (DR) with basic pay at this time under the 8th pay commission. This was confirmed in Parliament by the Ministry of Finance during the Winter Session of Parliament to provide clarity on the situation and answer questions raised by employee unions and MPs seeking interim relief through a merger. 

Understanding DA/DR and Its Role

DA/DR is defined as a way for government employees and pensioners to be protected against inflation, in effect, by periodically increasing their salaries or pensions. DA is calculated as a percentage of the basic pay amount and is adjusted every 6 months according to the Consumer Price Index. Over the years, all central pay commissions have combined the DA amount with the basic pay following their recommendations. The last time this occurred was in conjunction with the 7th pay commission.

8th Pay Commission Update

The 8th pay commission’s notification was issued on November 3, 2025, and it is expected that the commission will recommend new scales of pay, allowances, pensions, and other benefits within a 12 to 18-month time frame. Although DA/DR merger with basic pay is expected to be part of the final recommendation, at this time there are no plans to provide an interim or immediate merger of DA/DR with basic pay. The primary aim of the new pay commission will be to revise the current structure of the pay system to ensure that government employees receive appropriate wages relative to the economy where they live.

Government’s Response

The government informed parliament in response to questions raised in Lok Sabha that it would continue to review DA and DR separately until the receipt of the 8th Pay Commission’s recommendations to protect employees from additional inflation related expenses. The Government stressed that they would give appropriate consideration to aspects such as fitment and fiscal prudence when making changes to the basic pay structure.

What Employees Can Expect

Employees and retirees should continue to receive the usual increases in DA as per established practices while waiting for the complete set of recommendations from the 8th Pay Commission. Unions are continuing to lobby for an expedited decision on pay revisions; however, there is no prospect of a merger or major changes to the basic pay structure until after the 8th Pay Commission issues its final report.

The information provided in this article is based on publicly available government statements and official clarifications at the time of writing. Decisions related to allowances, pay commissions, and salary revisions may change based on future announcements or policy updates. Readers are advised to verify details through official government releases for the most accurate and updated information.

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