8th Pay Commission Notification Issued: Key Highlights from Lok Sabha Reply
The Government of India has officially announced the constitution of the 8th Central Pay Commission (8th CPC), marking an important development for Central Government employees and pensioners. The information was shared through a written reply in the Lok Sabha to Unstarred Question No. 212 on 1 December 2025.
In the reply, the Ministry of Finance addressed several questions raised by Shri Anand Bhadauria regarding the notification of the 8th CPC and the possibility of merging Dearness Allowance (DA) with Basic Pay.
Government Confirms Notification of the 8th Pay Commission
Responding to parts (a) and (b) of the question, the Minister of State for Finance, Shri Pankaj Chaudhary, confirmed that the Government has issued a Resolution dated 03.11.2025 to formally constitute the 8th Central Pay Commission.
A copy of this resolution has been provided as Annexure-1 with the official reply.
This announcement confirms earlier expectations that the next pay revision cycle for Central Government employees is now underway.
No Proposal to Merge DA/DR with Basic Pay
One of the major concerns raised was whether the Government plans to merge Dearness Allowance (DA) for employees or Dearness Relief (DR) for pensioners with their Basic Pay—mainly as an immediate relief measure in view of inflation.
The Government clarified that:
- No such proposal is under consideration at present.
- Therefore, DA/DR will not be merged with Basic Pay at this stage.
This response was given for parts (c), (d), and (e) of the question.
Why DA/DR Merger Is Not Being Considered
The Minister explained that the purpose of DA/DR is to compensate for the rising cost of living and to safeguard the real value of salaries and pensions against inflation.
Key points highlighted:
- DA/DR rates are revised every 6 months.
- Calculations are based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
- The index is published by the Labour Bureau, Ministry of Labour & Employment.
- This mechanism ensures timely inflation-adjusted compensation without merging DA with Basic Pay.
Thus, the periodic revision system continues to remain the Government’s preferred method for addressing inflation rather than a one-time merger.
What This Means for Central Government Employees and Pensioners
The constitution of the 8th Pay Commission is a major step toward revising pay structures, allowances, and pension benefits. While employees were hoping for an interim relief through DA merger, the Government has made it clear that:
- DA/DR will continue under the existing formula,
- Pay revision and related decisions will take place through the newly formed 8th CPC.
Employees and pensioners can now look forward to the commission’s recommendations, which traditionally cover salary structure, allowances, pension revisions, and other service-related benefits.