8th Pay Commission: Central Government Employees Demand DA Merger Into Basic Pay, Minimum Salary of INR 55,000 to INR 60,000

As the 8th Pay Commission consultations gather momentum, central government employee unions have pushed for one of the most significant structural changes to the salary framework in recent years - the merger of Dearness Allowance directly into basic pay. The demand, led by organisations including the All India NPS Employees Federation (AINPSEF), could reshape salaries, allowances, pensions, and retirement benefits for lakhs of government employees across India.

Why Unions Want DA Merged Into Basic Pay

At the heart of the demand is a simple argument: DA has risen so sharply that it can no longer be treated as a temporary inflation buffer. According to the memorandum submitted by AINPSEF to the 8th Pay Commission, DA had reached approximately 58% as of 31 December 2025. The federation stated that this level "clearly indicates a substantial increase in the cost of living and erosion in purchasing power." Unions argue that periodic DA hikes fail to adequately cover rising household costs including housing, healthcare, education, transportation, and daily urban expenses. 8th Pay Commission: Why Govt Employees Want Family Unit Formula Changed From 3 to 5.

What DA Merger Would Mean for Salaries

Merging DA into basic pay is significant because several salary components are directly linked to basic pay, including House Rent Allowance, transport allowance, pensions, retirement benefits, and annual increments. Once DA is absorbed into basic pay, the entire salary structure rises proportionally, delivering a permanent and compounding benefit to employees.

The INR 55,000 Minimum Pay Demand

The DA merger demand is closely linked to unions' proposed minimum salary revision. AINPSEF has proposed revising the family-unit model from three to five units, recalculating minimum pay at INR 6,000 per unit, arriving at INR 30,000. Adding the 58% DA takes the figure to approximately INR 47,400. After factoring in nutrition and consumption expenses, the federation argues the scientifically derived minimum pay should stand between INR 55,000 and INR 60,000. 8th Pay Commission Latest News: Know How Much Salary Will Rise if 3.83 Fitment Factor Is Approved.

What Happens Next

The 8th Pay Commission is currently in active consultation with employee unions before finalising its recommendations. Alongside fitment factor revisions, pension reforms, and family-unit recalculations, the DA merger has emerged as one of the most consequential demands shaping the future of central government salaries. Given that state governments often align their pay structures with central revisions, the outcome could have nationwide implications.

(The above story first appeared on LatestLY on May 14, 2026 05:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).