8th Pay Commission DA Merger: The issue of merging Dearness Allowance (DA) with basic pay has emerged as one of the key demands being raised by central government employees and pensioners before the 8th Pay Commission.
The 8th Pay Commission, headed by Justice Ranjana Prakash Desai, recently held a meeting in Puducherry on September 9. Its next meeting is scheduled to take place in Chandigarh on September 16, 17 and 18.
Since its establishment on November 3, 2025, the commission has conducted meetings in different parts of the country and discussed several important issues, including salary revision, the fitment factor, pension-related reforms and the possible merger of DA with basic pay.
Employees Demand DA Merger With Basic Pay
Several employee and pensioner organisations have asked the 8th Pay Commission to consider merging DA with basic salary once the allowance crosses 25%.
If such a proposal is accepted, it could have a substantial impact on the salaries of central government employees. Those in lower pay levels could particularly benefit from a higher basic pay following the merger.
However, it is important to note that DA merger is currently a demand under consideration and not an approved salary revision.
Why Are Government Employees Seeking a DA Merger?
Employee organisations argue that periodically adding DA to basic pay could provide employees with faster salary growth instead of making them wait for a new Pay Commission for a major revision.
The All India National Pension System Employees Federation (AINPSEF) has supported the idea, stating that such a mechanism could help employees receive better salary increases over time.
The National Council-Joint Consultative Machinery (NC-JCM) has also reportedly included the demand in its memorandum submitted to the 8th Pay Commission, seeking the merger of DA with basic pay when it crosses the 25% mark.
Other employee unions have also raised similar demands before the commission.
What Is the Current DA System?
At present, Dearness Allowance is revised twice a year for central government employees and pensioners. It is calculated separately from basic pay and does not automatically become part of the basic salary when it reaches a particular percentage.
Employee organisations have also proposed changes to the annual increment system.
The NC-JCM has suggested an annual increment of 6%, while AINPSEF has proposed an increment of 7%.
How Could a Level 6 Employee’s Salary Increase?
The potential impact can be understood through an example involving a Level 6 central government employee.
Under the 7th Pay Commission, the basic pay at this level starts at ₹35,400.
For illustration, if the 8th Pay Commission adopts a fitment factor of 2.1, the revised basic pay would be:
₹35,400 × 2.1 = ₹74,340
Now, if the calculation assumes a 7% annual increment, as proposed by AINPSEF, along with an average 4% annual increase in DA, the basic pay could rise significantly over the following years.
Under this illustrative calculation, the basic pay could reach approximately ₹1,19,374 by January 1, 2033.
At the same time, the estimated DA would be around ₹33,425.
This would put the estimated gross amount, combining basic pay and DA, at approximately:
₹1,19,374 + ₹33,425 = ₹1,52,799
What Happens to DA After a Merger With Basic Pay?
If DA is merged into basic pay under the proposed mechanism, the DA amount being paid separately could effectively become part of the revised basic salary. This would also influence future calculations linked to basic pay, depending on the final rules notified by the government.
Based on the above illustration, a Level 6 employee’s revised basic salary could rise from the assumed ₹74,340 in January 2026 to around ₹1.19 lakh by January 2033.
When the estimated DA of ₹33,425 is added, the projected gross amount comes to roughly ₹1.53 lakh.
This would be more than twice the assumed revised basic pay of ₹74,340.
Important Note on the Salary Calculation
The figures above are illustrative projections based on the assumed 2.1 fitment factor, 7% annual increment and 4% average DA increase. The 8th Pay Commission has not yet finalised these figures. The actual salary of central government employees will depend on the commission’s recommendations and the government’s final decision.
8th Pay Commission DA Merger: What Employees Should Know
The demand to merge DA with basic pay could become an important issue during the 8th Pay Commission’s deliberations. Employee organisations are seeking a mechanism that could provide more frequent salary growth rather than requiring employees to wait for another Pay Commission.
For now, however, there is no official approval for a 25% DA merger or a 2.1 fitment factor. Employees will have to wait for the commission’s recommendations and the government’s final decision before the actual impact on salaries becomes clear.