Even though the 8th Pay Commission is still working on its final recommendations, central government employee unions have already started demanding immediate financial relief from the government. Employee organizations argue that waiting until the commission’s final implementation could significantly increase financial pressure on workers and pensioners due to rising inflation and delayed salary revisions.
One of the biggest demands gaining attention is the merger of Dearness Allowance (DA) into the basic salary before the 8th Pay Commission recommendations officially come into effect. Employee unions believe this step could provide early relief to lakhs of central government employees while also reducing the government’s future arrears burden.
The central government has reportedly given the 8th Pay Commission around 18 months to prepare its recommendations regarding:
The commission is expected to impact more than 45 lakh central government employees and nearly 60 lakh pensioners across India.
However, employee unions say the final report may take considerable time, possibly until mid-2027. During this waiting period, inflation and living costs are expected to continue rising, increasing the financial burden on employees and retirees.
Because of this, unions are now pushing for interim relief measures instead of waiting for the complete implementation of the new pay structure.
Employee organizations argue that the government could provide immediate financial support by merging the current Dearness Allowance into the basic salary structure.
DA is meant to offset the impact of inflation on employees and pensioners. Since DA rates continue to rise regularly, unions believe integrating it into basic pay now could help simplify future salary revisions under the 8th Pay Commission.
According to Dr. Manjeet Singh Patel, if the future fitment factor is fixed around 2.0 or higher, the government could first merge DA into basic pay and provide an interim 1.5 times salary revision before the final pay commission recommendations arrive.
He believes this approach could help employees manage rising costs related to:
Employee unions also argue that this step could reduce the government’s future burden of paying huge arrears in one lump sum.
Experts say that if DA is merged into basic salary, several other allowances linked to basic pay may automatically increase as well.
These could include:
Since HRA calculations are directly linked to basic salary and city classification, even partial salary restructuring before the 8th Pay Commission could lead to noticeable financial relief for employees.
At present, the government has not agreed to any proposal related to merging DA with basic salary.
According to statements made earlier in Parliament, Pankaj Chaudhary had clarified in a written reply that the government currently has no plan to merge Dearness Allowance into basic pay.
Labour and employment experts also believe the government is likely to approach any interim relief proposal very cautiously because of the massive financial implications involved.
Experts say one of the main reasons behind employee unions’ demand is the fear of a huge arrears payout once the 8th Pay Commission recommendations are finally implemented.
The revised pay structure is expected to be effective from January 1, 2026. If implementation gets delayed until 2027, the government may eventually have to pay:
for many months retroactively.
According to labour expert Rohitashwa Sinha, combining higher pay scales with DA merger and retrospective implementation could create a substantial financial burden on the central government.
Once the 8th Pay Commission is implemented, arrears could arise under multiple categories, including:
Because these revisions may apply retrospectively from January 2026, the total arrears amount could become extremely large if implementation is delayed significantly.
Government data from the implementation of the 7th Pay Commission shows how expensive such revisions can become.
According to official figures:
This historical example is now being used by employee unions to argue that providing partial relief earlier could reduce future financial pressure on the government.
At present, the 8th Pay Commission is continuing consultations with employee organizations across different states and union territories.
The commission is reportedly gathering:
before preparing its final recommendations.
Despite growing pressure from employee unions, the government has not made any official announcement regarding:
For now, central government employees and pensioners continue to wait for clarity on whether any early financial relief will be granted before the 8th Pay Commission recommendations are formally implemented.
