8th Pay Commission: Will 50% DA Be Merged With Basic Pay for Central Government Employees? Big Update Soon

Big news for central government employees about the 8th Pay Commission! Will 50% DA merge with the basic salary? Find out all the details about the government's stand and the chances of a salary hike in this report.

Image Credit : Getty

8th Pay Commission Latest News

Central government employees are buzzing with excitement over new updates on the 8th Pay Commission and Dearness Allowance (DA). The biggest question on everyone's mind is whether the current DA will be merged with their basic salary.

Image Credit : Google

Employee unions are putting forward their demands. The Federation of National Postal Organisations (FNPO) sent a letter to the Chairman of the 8th Pay Commission on 27th February 2026, outlining their requests.

Image Credit : stockPhoto

Their main demand is to merge 50% DA with the basic salary, effective from 1st January 2026, and to provide interim relief. The Confederation of Central Government Employees & Workers even called a strike on 12th February 2026 over this issue.

Image Credit : Google

The unions argue that non-stop inflation has weakened the purchasing power of employees. They point out that in the past, whenever DA crossed the 50% mark, it was always merged with the basic salary to make necessary adjustments.

Image Credit : X

Even though employees are hopeful, the government's stance is firm. In written replies to Parliament in December 2025 and afterwards, the government clearly stated that it is not considering any proposal to merge DA with basic salary right now. They feel that the six-monthly DA/DR hikes are enough to handle inflation.

Image Credit : stockPhoto

Under the 5th Pay Commission, the rule was to merge DA with basic pay at 50%, which was done in 2004. However, the 7th Pay Commission (7th CPC) recommended stopping this practice (Para 1.32). Now, DA is calculated separately even after crossing 50%.

Image Credit : Asianet News

But here's some relief for employees. As soon as DA crossed the 50% mark, other allowances like HRA, the gratuity limit, and education allowance automatically went up by 25%.

Image Credit : our own

Currently, the DA for central government employees stands at 58%, and it's expected to rise by another 2% soon. If the government agrees to merge 50% DA with basic pay, a Level-1 employee could see their monthly salary go up by about ₹1,080.

Image Credit : our own

This merger would also have a huge impact on retirement benefits like gratuity and leave encashment, as these are calculated based on the 'last basic salary' drawn by the employee.

Image Credit : our own

What's next for the 8th Pay Commission? The commission, headed by Justice Ranjana Prakash Desai, has already begun its work. It is expected to take around 18 months to submit its final report.

Image Credit : our own

Experts think that the recommendations of the 8th Pay Commission might be implemented by the end of 2027. Until then, employees will have to depend on the regular six-monthly DA increases.