- By Aditya Jha
- Mon, 01 Dec 2025 04:28 PM (IST)
- Source:JND
8th Pay Commmission: Union Minister of State for Finance Pankaj Chaudhary has clarified that currently there is no proposal of merging the existing dearness allowance (DA) or dearness relief (DR) with the basic pay. While responding to a query on the first day of the winter session, Chaudhary stated that the centre has notified the constitution of the 8th Central Pay Commission, adding that rates of DA are revised every six months. Earlier ahead of Diwali, the centre hiked the DA/DR by 3 per cent, providing major relief to the central government employees.
While responding to the query, Chaudhary stated that the DA/DR is hiked in order to adjust the cost of living, adding that the revision is done every six months. “No proposal regarding merger of the existing dearness allowance with the basic pay is under consideration with the government at present," the Minister of State for Finance clarified.
"In order to adjust the cost of living and to protect basic pay/ pension from erosion in real value on account of inflation, the rates of DA/ DR are revised periodically every six months on the basis of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by Labour Bureau, Ministry of Labour and Employment," he asserted.
While Dearness Allowance (DA) is for the central government employees, the dearness allowance (DR) is provided to the pensioners. The hike in the DA/DR will significantly benefit more than 5 million employees and around 7 million pension receivers. Lok Sabha MP Anand Bhadoria had asked the Finance Ministry whether the government has recently issued a notification establishing the 8th Central Pay Commission, further asking for more details.
A significant salary increase for central government employees is expected in the future after the formation of the 8th Pay Commission.