8th Pay Commission: Government Confirms Notification, TOR, DA Merger Status & Pension Revision Updates
The Government of India has officially notified the 8th Pay Commission, marking an important development for Central Government employees and pensioners. The information was shared through a written reply in the Rajya Sabha on 2 December 2025, addressing key questions on the commission’s constitution, DA merger, and pension revision under the upcoming pay structure.
Government Notifies 8th Pay Commission With Terms of Reference
The Ministry of Finance confirmed that the Government has issued a Resolution dated 03 November 2025 to formally constitute the 8th Central Pay Commission (8th CPC).
This resolution also includes the Terms of Reference (TOR), outlining the areas the Commission will examine and recommend upon.
The TOR typically covers aspects such as:
- Pay structures of Central Government employees
- Allowances and related benefits
- Pension framework
- Financial implications and sustainability
The detailed TOR has been enclosed in the government’s official notification (Annexure-I).
No Proposal to Merge DA/DR With Basic Pay
A question was raised whether the Government would merge the Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners with basic pay as an immediate relief measure.
The Government clearly stated that no such proposal is under consideration at present.
This means:
- DA/DR will continue to be revised as per existing formula
- No interim relief through DA merger has been planned
- Basic pay will remain unchanged until the 8th CPC recommendations are accepted and implemented
Pension Revision Will Be Covered Under the 8th Pay Commission
Responding to concerns about pension revision, the Ministry confirmed that the 8th Pay Commission will examine and recommend changes related to pensions.
This includes:
- Revision of pension structures
- Possible improvements in pension computation
- Consideration of parity and sustainability issues
Thus, pension revision is very much part of the 8th CPC mandate, and not excluded.
Key Takeaways
- The 8th Pay Commission has been officially notified by the Government.
- Terms of Reference (TOR) have been defined in the notification.
- No DA/DR merger with basic pay is planned at the moment.
- Pension revision will be handled by the 8th CPC along with pay and allowances.
The confirmation of the 8th CPC marks a significant step toward the next pay revision cycle for millions of Central Government employees and pensioners. More clarity will emerge as the Commission begins its detailed review and submits recommendations in the coming months.