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Since the central government announced the Terms of Reference (ToR) for the 8th Pay Commission many employee and pensioner groups have been sending letters to the Prime Minister and the Finance Minister. They have asked that the ToR be changed so that pension revision is clearly included. On Tuesday (December 2 2025) the Finance Ministry told the Rajya Sabha that the 8th Pay Commission will indeed give recommendations on revising pensions for central government employees. The clarification came in response to an unstarred question by MPs Javed Ali Khan and Ramji Lal Suman who asked whether pension revision was being left out of the 8th CPC. Pankaj Chaudhary Minister of State in the Finance Ministry said that pension-related matters are already part of the commission’s mandate. “The 8th CPC will give its recommendations on pay allowances pensions and other issues related to central government employees” Chaudhary stated. Will the government merge dearness allowance (DA) with basic pay? MPs Khan and Suman also asked the Finance Ministry whether the government planned to merge the current dearness allowance (DA) or dearness relief (DR) with the basic pay to give quick financial relief to employees and pensioners. In his reply Minister of State Pankaj Chaudhary made it clear that the government has no intention of doing so. “No proposal regarding merger of the existing dearness allowance with the basic pay is under consideration with the government at present. In order to adjust the cost of living and to protect basic pay/ pension from erosion in real value on account of inflation the rates of DA/ DR are revised periodically every six months on the basis of the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by Labour Bureau Ministry of Labour and Employment Chaudhary said in response to a query in the Lok Sabha. When DA touched 50 per cent in January 2024 many employee groups urged the Finance Ministry to merge DA with basic pay arguing that it would improve salaries and future benefits. However the government has repeatedly said that it does not plan to merge DA with basic salaries. Dearness Allowance (DA) is paid to central government employees while Dearness Relief (DR) is given to pensioners. The recommendations of the 8th Pay Commission will directly affect more than 5 million employees and over 6.5 million pensioners. 8th Pay Commission: When Will It Be Implemented? The central government announced the 8th Pay Commission in January this year as the 7th Pay Commission completes its 10-year cycle in 2025. The new commission is headed by Justice (Retd.) Ranjana Desai and is expected to submit its report — covering salary structures basic pay the fitment factor and other benefits within 18 months.