It’s been nearly a decade since the 7th Pay Commission reshaped the salaries and pensions of millions of central government employees. Naturally, workers are now eager for the 8th Pay Commission to bring long-awaited relief.
But here’s the catch — while the Union Cabinet has approved the Terms of Reference (ToR) and appointed former Supreme Court judge Ranjana Prakash Desai as Chairperson, employees are still waiting for one major confirmation: Will 50% of Dearness Allowance (DA) be merged into basic pay?
8th Pay Commission: What’s Official So Far
The 8th Pay Commission will function as a temporary body with a Chairperson, a Member (part-time), and a Member-Secretary. It has 18 months to submit its recommendations from the date of formation.
This means — if work starts by early 2026 — the report may arrive by mid-2027, and implementation could happen around Diwali 2027 or later.
In simple terms: employees might need to wait at least two more years before seeing higher salaries or pension revisions.
Why Employees Want a 50% DA Merger
As of now, the DA rate has touched 58%, and is expected to cross 60% by January 2026. Historically, whenever DA crossed 50%, the government merged it into the basic pay to maintain balance between inflation and income.
Employee unions like AIDEF and the Confederation of Central Government Employees and Workers are urging the government to merge 50% DA into basic pay immediately. They’re also demanding interim relief and restoration of the Old Pension Scheme (OPS).
C. Srikumar from AIDEF explains that since the 8th Pay Commission’s formation is already delayed by a year, the least the government can do is provide interim relief and merge DA. “Extending the pay revision cycle beyond ten years is unfair to employees and pensioners,” he said.
What to Expect in the Coming Months
While the Cabinet has cleared the ToR, the government hasn’t yet shared details publicly. This has left employee unions guessing whether their key demands — DA merger, interim relief, and OPS restoration — have been included.
Once the Commission’s office is set up, it will begin inviting memorandums from unions and departments. Employee bodies like AIDEF are preparing to push their case strongly.
According to S.B. Yadav from the Confederation, even after the Commission’s report is submitted, it goes through several rounds of review, meaning “implementation could stretch beyond 2027.”
The Bigger Picture
Pay commissions aren’t just about salaries — they’re about fairness, dignity, and keeping up with India’s fast-changing economy. Employees argue that while fiscal discipline matters, the government must also prioritize welfare, motivation, and parity.
Whether or not the 50% DA merger happens soon, the message from employees is clear: after ten years, they can’t wait any longer for meaningful pay and pension reforms.
Frequently Asked Questions
1. When will the 8th Pay Commission recommendations be implemented?
Most likely around late 2027, since the Commission has 18 months to submit its report, followed by government review and approvals.
2. What is the current DA rate, and why is the 50% merger important?
The DA rate stands near 58% and could cross 60% soon. Merging 50% DA into basic pay helps stabilize income and reduce inflation impact.
3. Will pensioners also benefit from the DA merger?
Yes, if approved, both employees and pensioners will receive increased pay and Dearness Relief (DR) accordingly.