The Central Government has approved a 2% hike in Dearness Allowance (DA), raising it from 53% to 55%. The next revision is expected in November 2025, marking the last DA revision under the 7th Pay Commission. The calculation of DA is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), which may see a change in its base year (currently 2016).

Will Increased DA Be Merged with Basic Salary?

🔹 In the 5th Pay Commission, when DA exceeded 50%, it was merged with the basic salary.
🔹 However, this merger rule was removed in subsequent pay commissions.
🔹 Now, with the 8th Pay Commission approaching, employees are demanding that DA be merged into the basic salary again.

At present, the government has not taken any official decision regarding this.

Employee Unions’ Demand

📌 The 6th and 7th Pay Commissions did not recommend merging DA into basic salary.
📌 Employee unions, including the National Council of Joint Consultative Machinery, have been continuously demanding this change.
📌 On March 18, 2025, Minister of State for Finance Pankaj Chaudhary clarified in Rajya Sabha that the government currently has no plans to merge DA with the basic salary.

Next DA Revision & Impact of 8th Pay Commission

✔️ The next DA hike will happen in November 2025 and will be applicable from July 2025.
✔️ This will be the final DA revision under the 7th Pay Commission, as the 8th Pay Commission is set to be implemented from January 2026.

How Will 8th Pay Commission Calculate DA?

📌 Currently, DA is calculated using the AICPI-IW index (base year 2016).
📌 The base year might be revised to better reflect inflation and changing expenditure patterns.
📌 However, any such change will depend on the 8th Pay Commission’s recommendations and the government’s approval.

Employees should stay updated with upcoming revisions, as major changes in salary structures may occur in 2026. 🚀💼