Centre Rules Out Merger of Dearness Allowance With Basic Pay Amid 8th Pay Commission Speculation
The Central government has clarified that it is not considering merging the existing dearness allowance (DA) with the basic pay of central government employees. The clarification was issued in the Lok Sabha on Monday amid growing public speculation linked to the upcoming 8th Central Pay Commission (CPC).
Responding to a written query, Minister of State for Finance Pankaj Chaudhary said the government currently has no proposal under examination to merge DA with basic pay or to offer interim relief to employees ahead of the 8th CPC.
Government’s Response in Parliament
In his written reply, the Minister stated that “no proposal regarding the merger of the existing dearness allowance with the basic pay is under consideration.” The clarification comes at a time when employee unions have raised concerns about rising inflation and the mismatch between DA revisions and retail inflation trends.
Unions have been demanding that 50% of DA be merged with the basic pay, especially after the government formally announced the Terms of Reference for the 8th CPC earlier in November. However, Monday’s statement signals that the Centre is not planning any such move at present.
Concerns Raised by Employees and Pensioners
Central government employees and pensioners have been vocal about inflation levels that have reached a three-decade high, arguing that current DA and DR (Dearness Relief) adjustments do not sufficiently address rising costs.
They have also urged the government to offer interim financial relief until the recommendations of the 8th Pay Commission are finalised. Monday’s clarification makes it clear that the Centre is not considering such measures for now.
Government Rejects Viral Claim on DA Hikes
The Centre also recently dismissed a viral social media message claiming that retired government employees would lose eligibility for future DA hikes and pay commission benefits under the Finance Act 2025.
Calling the claim “fake,” the government clarified on X (formerly Twitter) that the Finance Act does not contain any such provision. Instead, it pointed out that the only recent change relates to Rule 37 of the CCS (Pension) Rules, 2021, which deals specifically with absorbed PSU employees.
According to official clarification, the amendment states that if an absorbed PSU employee is dismissed for misconduct, their retirement benefits may be forfeited. The change was introduced after consultations with the Department of Pension and Pensioners’ Welfare and the Ministry of Finance.
Scope of the Rule Amendment
The amendment applies only to a narrow category of employees, and does not impact regular central government pensioners. It does not affect DA hikes, pension revisions, or pay commission recommendations.
Despite this, the viral claim created confusion among retired employees, prompting the government to issue a public correction.
Conclusion
The latest statement in the Lok Sabha solidifies the government’s position that no change is planned at present for DA-basic pay merger, nor is any interim relief being considered for central government employees. While discussions around the 8th Pay Commission continue, the Centre has emphasised that misinformation should not influence expectations regarding pay and pension reforms.
Final Thoughts from TheTrendingPeople.com
The government’s latest clarification brings an end to widespread speculation on DA merger and interim relief ahead of the 8th CPC. With inflation and cost-of-living challenges at the forefront for employees and pensioners, expectations around financial relief remain high. However, the Centre’s statement indicates that policy changes will follow formal recommendations and structured processes, not rumours or viral claims. As the 8th CPC begins its work, employees will closely watch for the next set of official updates.