8th Pay Commission: The clarification comes days after the government issued the Terms of Reference (ToR) for the Eighth Central Pay Commission.

The central government, answering a query regarding constitution of 8th Pay Commission, informed Parliament on Monday that it is currently not examining any plan to combine any part of the DA or dearness allowance with the basic pay of central government employees.

The clarification comes days after the government issued the Terms of Reference (ToR) for the 8th Central Pay Commission.

"No proposal regarding merger of the existing dearness allowance with the basic pay is under consideration with the government at present," minister of state for finance Pankaj Chaudhary said in a written response to the Lok Sabha on Monday, December 1, as the Winter Session of Parliament kickstarted.

"ln order to adjust the cost of living and to protect Basic Pay/Pension from erosion in real value on account of inflation, the rates of DA/DR are revised periodically every 6 months on the basis of All lndia Consumer Price lndex for lndustrial Workers (AlCPl-lW) released by Labour Bureau, Ministry of Labour and Employment," the reply further read

In recent days, several employee unions have urged the Centre to immediately merge 50 per cent of the DA with basic pay. With the 8th Pay Commission expected only after 2027, employee groups have been advocating for an early DA-basic pay merger, which would increase the basic salary and result in future DAs being calculated on the revised amount.

Terms of Reference for 8th Pay Commission

The Union Cabinet on October 28 approved the Terms of Reference (ToR) of 8th Pay Commission, which will revise the salaries of nearly 50 lakh central government employees. Former Supreme Court judge Ranjana Prakash Desai will be heading the Commission as the chairperson.

Eighth Pay panel will submit recommendations within 18 months and it is likely to come into effect from January 1, 2026, I&B minister Ashwini Vaishnaw had said at a Cabinet briefing.

The government had announced formation of the 8th Central Pay Commission in January, 2025 to examine and recommend changes in the Salaries and other benefits of central government employees.

The Central Pay Commissions are constituted periodically to go into various issues of emoluments structure, retirement benefits and other service conditions of central government employees and to make recommendations on the changes required thereon.

The recommendations of the pay commissions are usually implemented after a gap of every ten years.