7th Pay Commission DA Merger: Latest Government Decision & Employee Benefits

A lot of rumors about a DA merger under the 7th Pay Commission are going around among central government employees and pensioners. This subject is getting a lot of attention due to the ending of the 7th Pay Commission on December 31, 2025, and the beginning of the 8th one in 2026.

The Dearness Allowance (DA) compensates for increasing prices. If it is combined with basic pay, it will permanently increase the base salary. However, the government has unambiguously declared that it will not carry out any such merger in the present situation.

What Does DA Merger Mean?

In case of high DA percentages, like the past commissions, it sometimes gets merged into basic pay. This results in higher salaries, pensions, and some allowances. The 7th Pay Commission started with 0% DA in 2016 and has been on a continuous rise since then.

Current DA Status in 2026

DA is around 58-60% as of early 2026 after the recent hikes. The revision for January 2026 is expected soon, possibly a slight increase. However, this is not connected to any merger.

Why Rumors About Merger Are Spreading

The merger is being talked about on social media and some sites before the 8th Pay Commission. The unions have put forth this demand owing to the rising cost of living. But the officials have denied any such plan.

Government’s Official Stand

The Finance Ministry has reiterated several times that there is no proposal at present for a merger of DA with basic pay. DA will continue to be revised twice a year as per the usual practice.

What Happens in the 8th Pay Commission?

The 8th Pay Commission will start on January 1, 2026. The usual practice is to reset the accumulated DA to zero and let it merge into the new basic pay through-fitment factor. The full adjustments might take a while, and then the staff would get their arrears.

Past DA Mergers: A Quick Look

Mergers in the past commissions occurred at very high DA levels, such as 50% or even 100%. Under the 7th CPC, no automatic merger happened, although there was a substantial increase in DA beyond the 50% mark.

Impact on Employees and Pensioners

The merger not taking place means that the salaries are going to be the same as current basic pay plus DA. The DA hike in January 2026 will give a little extra in the take-home pay.

Recent DA Percentage Updates

PeriodDA PercentageEffective FromNotes
January 202555%01.01.2025Previous hike
July 202558%01.07.20253% increase
January 2026 (Expected)60%01.01.2026Likely 2% hike, pending final
Under 8th CPC (Future)Reset to 0%ImplementationMerged into new basic pay

How to Stay Updated

Real news can always be found at official sites like the Department of Expenditure or PIB. Do not believe viral messages that have not been verified.
In summary, there is no DA merger under the 7th Pay Commission—this is confirmed by government clarifications, and the rumors are baseless. DA will still be increasing from time to time, and a tiny increment is likely to happen soon. The 8th Pay Commission will bring bigger changes. Meanwhile, keep visiting doe.gov.in or pib.gov.in, and consult your department for updates on your salary. Planning ahead will make things easy!

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