The 8th CPC DA Merger 2026 is a hot topic among central government employees and pensioners. As the 8th Central Pay Commission progresses, merging accumulated Dearness Allowance into basic pay could bring significant salary boosts effective from January 2026.
What is DA Merger in Pay Commission?
Dearness Allowance compensates for inflation and rises twice yearly. During pay revisions, the accumulated DA typically merges into basic pay, resetting it to zero. This happened in the 7th Pay Commission with 125% DA merged using a 2.57 fitment factor.
Current DA Status in Late 2025
As of December 2025, expected DA stands around 55-60% after January 2026 announcement. Without merger, it continues rising. The 8th CPC may absorb this into basic pay, substantially increasing salaries and allowances.
Expected Merger in 2026
Experts anticipate full DA merger under the 8th Commission, similar to past practices. This would happen alongside a new fitment factor, potentially raising minimum pay and flowing benefits to HRA, TA, and pensions.
Impact on Salaries and Pensions
Merger boosts take-home pay immediately, with arrears from January 2026. Pensioners gain revised fixed pensions. Over 50 lakh employees and 69 lakh retirees stand to benefit amid high inflation.
| Aspect | Details |
|---|---|
| Current Expected DA (Jan 2026) | Around 55-60% |
| Previous Merger (7th CPC) | 125% DA merged (effective Jan 2016) |
| Expected Merger Date | January 1, 2026 (with 8th CPC implementation) |
| Projected Fitment Factor | 2.86 to 3.0+ |
| Minimum Basic Pay Now | ₹18,000 |
| Post-Merger Projection | ₹50,000+ (approximate) |
Why DA Merger Matters in 2026
The 8th CPC DA Merger 2026 provides crucial relief against rising costs. It realigns pay structures fairly, ensuring employees maintain purchasing power while the commission finalizes recommendations.
Monitor official updates as the 8th Pay Commission report nears submission in 2027 for confirmed details on merger and hikes.
Also read: OPS Update 2026: Why Government Employees Still Push for Guaranteed Pensions