The Government of India has officially notified the constitution of the Eighth Central Pay Commission (8th CPC) through a resolution dated November 3, 2025 according to a written reply in the Lok Sabha on December 1, 2025.
View 8th CPC 2025: Members, Terms, and Key Objectives
The reply was given by Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance (Department of Expenditure) in response to a question raised by Shri Anand Bhadauria regarding the formation of the new pay commission and the proposal to merge Dearness Allowance (DA) and Dearness Relief (DR) with basic pay.
What the Government Said
Responding to parts (a) and (b) of the question, the Minister confirmed:
“Yes sir, the Government has notified a Resolution dated 03.11.2025 for constitution of the Eighth Central Pay Commission. A copy of the Notification is enclosed at Annexure-I.”
This marks the formal beginning of the 8th Central Pay Commission which will review and recommend revisions to pay structures, allowances and pensions for Central Government employees and pensioners.
No Proposal to Merge DA/DR with Basic Pay Yet
On the issue of merging Dearness Allowance (DA) and Dearness Relief (DR) with basic pay, the Minister clarified that:
“No proposal regarding merger of the existing DA/DR with the Basic Pay is under consideration with the Government at present.”
He further explained that the government is already addressing inflation-related pay erosion by revising DA/DR rates every six months based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) issued by the Labour Bureau, Ministry of Labour and Employment.
What This Means for Employees
The formation of the 8th Central Pay Commission is expected to benefit over 50 lakh Central Government employees and 60 lakh pensioners. The Commission will likely examine:
• Revised pay matrix and grade pay structure
• Allowances and perks for serving employees
• Pension structure for retired government personnel
• Impact of inflation and living costs on wages
However, until the Commission submits its report and recommendations are accepted, no immediate change in salary or pension structure will take place.
The last such revision was done by the 7th Central Pay Commission, whose recommendations were implemented from January 1, 2016. Pay commissions are typically constituted every 10 years making the 2025 notification timely in line with past patterns.
The notification of the 8th Central Pay Commission signals the start of a comprehensive review of government pay structures. The Commission’s recommendations, once finalized are expected to play a significant role in shaping public sector compensation for the next decade.
About the Author
1 thought on “8th Pay Commission Update: Will DA/DR Be Merged with Basic Pay?”
Comments are closed.