8th Pay Commission: DA Likely to Reset to 0% After Merger Into Basic Pay, Expert Says; Gramin Dak Sevaks Get 2% DA Hike to 60%

The 8th Pay Commission is expected to reset Dearness Allowance to 0% from January 2026 after merging it into revised basic pay, while Gramin Dak Sevaks have received DA hike

By: Nisha Srivastava
Last Updated: May 14, 2026 15:38:49 IST

 8th Pay Commission: Discussions around the upcoming 8th Pay Commission are gaining momentum as the panel continues meetings in different cities across India. Amid rising expectations from central government employees, one major question is being widely discussed, will Dearness Allowance (DA) become zero once the 8th Pay Commission is implemented?

At present, central government employees receive 60% DA under the 7th Pay Commission. Many employees are now trying to understand whether this allowance will disappear after the new pay commission comes into effect and whether it will benefit or hurt their salaries.

According to Dr. Manjeet Patel, National President of the All India NPS Employees Federation, the DA will indeed reset to zero after the implementation of the 8th Pay Commission.

Why Will DA Become Zero After 8th Pay Commission Implementation?

Dr. Patel explained that the 7th Pay Commission officially ends in December 2025, while the 8th Pay Commission is expected to come into effect from January 1, 2026. He said, “The 7th Pay Commission ends in December 2025. The 8th Pay Commission will be implemented from January 1, 2026. Once the new pay commission comes into force, the Dearness Allowance will become zero. After that, DA will again increase through the twice-a-year revisions.” This means that the existing 60% DA will not continue separately under the new structure. Instead, it will be merged into the revised basic salary before the new pay scales are introduced.

8th Pay Commission: How Does the DA Merger Work?

Under previous pay commissions, the accumulated DA was usually merged with the basic pay before a new salary structure was introduced. The same process is expected under the 8th Pay Commission as well.

Currently, DA is nearly equal to 60% of the basic salary. Once merged, the revised basic pay will already include the effect of this DA amount. Therefore, the new DA cycle will begin again from zero.

Experts believe this process generally benefits employees because

  • The revised basic salary becomes higher
  • Future DA calculations are made on the increased basic pay
  • Other allowances linked to basic salary may also rise

8th Pay Commission: Good News for Gramin Dak Sevaks (GDS)

Meanwhile, the Department of Posts has announced a fresh DA hike for Gramin Dak Sevaks (GDS). As per an order issued on May 10, 2026, the DA for GDS employees has been increased by 2%, taking it to 60% of the basic Time Related Continuity Allowance (TRCA). The increase follows the Union Cabinet’s decision to raise DA and Dearness Relief (DR) by 2% for central government employees and pensioners to help offset inflation.

Important 8th Pay Commission Meeting in Delhi

According to information available on the official 8th Pay Commission website, the commission is currently operating from Chandralok Building, Janpath, New Delhi. An important meeting is scheduled for May 13 and 14 in Delhi, where several stakeholders are expected to participate. Representatives from the Ministry of Defence (MoD), Ministry of Railways (MoR), defence forces, railway unions, and registered employee organizations based in Delhi are likely to attend the discussions. The meeting is being viewed as a key step in shaping salary revisions and employee-related recommendations under the upcoming pay commission.

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