No DA merger with Basic Pay: Official Lok Sabha reply ends a major rumour
A recurring demand and rumour cycle around every Pay Commission is the merger of Dearness Allowance (DA) with Basic Pay as an immediate relief. The Government has officially clarified in Parliament that there is no proposal under consideration to merge existing DA with Basic Pay.
What the Government said (officially)
In a Lok Sabha reply (answered on 01 December 2025), the Ministry of Finance stated:
– The 8th CPC has been notified via the Resolution dated 03.11.2025.
– No proposal regarding merger of the existing DA with Basic Pay is under consideration.
Why this clarification matters
DA merger is often discussed as a shortcut way to raise take-home pay and pension base, because DA is a percentage over Basic Pay/Pension. A merger can change the pay base and can also change the pattern of future DA calculations. Because of this, it has heavy fiscal implications. The Government reply clearly shuts down the idea at the current stage.
What the Government highlighted instead
The same reply explains the existing mechanism:
– DA/DR rates are revised periodically every 6 months.
– DA/DR revision is linked to AICPI-IW (All India Consumer Price Index for Industrial Workers) released by the Labour Bureau.
Source (official)
1) Lok Sabha Unstarred Question No. 212, answered on 01.12.2025:
https://sansad.in/getFile/loksabhaquestions/annex/186/AU212_c9BdR8.pdf?source=pqals
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