5 months ago
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NEW DELHI: The cardinal authorities has clarified that it is not considering immoderate connection to merge dearness allowance (DA) oregon dearness alleviation (DR) with the basal wage of cardinal authorities employees and pensioners.In a written reply to the Lok Sabha connected Monday, curate of authorities for concern Pankaj Chaudhary said, "No connection regarding merger of the existing Dearness Allowance with the Basic Pay is nether information with the Government astatine present." The connection further stated that the authorities periodically revises DA/DR each six months to offset inflation."In bid to set the outgo of surviving and to support Basic Pay/Pension from erosion successful existent worth connected relationship of inflation, the rates of DA/DR are revised periodically each 6 months connected the ground of All India Consumer Price Index for Industrial Workers (AICPI-IW) released by Labour Bureau, Ministry of Labour and Employment," it added.The clarification comes amid increasing demands from worker unions seeking an contiguous merger of 50% DA with basal wage to offset rising inflation.
8th Pay Commission
The concern ministry besides confirmed that the authorities has issued a notification dated November 3, 2025, formally constituting the Eighth Central Pay Commission (8th CPC).Prime Minister Narendra Modi-led Cabinet has granted support for the Terms of Reference governing the 8th Central Pay Commission past week.
This committee volition measure and found caller wage structures and post-retirement benefits for cardinal authorities unit and pensioners. The commission's broad reappraisal is expected to necessitate betwixt 12 to 18 months to implicit and taxable its findings. It volition revise salaries of astir 50 lakh cardinal authorities employees and pensions of astir 65 lakh pensioners.
What next?
The 8th Pay Commission volition present statesman its work, expected to tally until mid-2027. The committee volition taxable its study successful 18 months and interim reports arsenic and erstwhile they are finalised. If approved connected schedule, revised salaries and pensions are expected to instrumentality effect from January 1, 2026, expanding take-home wage and pension payouts for cardinal authorities unit and retirees.
