Let me share something that might surprise you. If you have been following social media or WhatsApp forwards lately, you have probably seen endless posts about the government merging Dearness Allowance with basic pay. The news sounds exciting, and honestly, who would not want a bigger salary? But here is the reality check I need to give you as someone who tracks these developments closely.
The government has made its position absolutely clear, and it is time we separate facts from speculation.
What the Government Has Actually Said
In December 2025, the Finance Ministry gave a straightforward response in Parliament. When asked directly about merging DA with basic pay, the Minister of State for Finance stated in no uncertain terms that “there is no proposal under consideration” for such a merger . This was not some casual comment. It was an official parliamentary response that puts all speculation to rest, at least for now.
Let me explain why this matters. Dearness Allowance continues to be revised every six months based on the All India Consumer Price Index for Industrial Workers, and the government maintains that this biannual revision adequately compensates employees for inflation . From their perspective, no structural changes are necessary.
Where Did This Merger Talk Come From?
I understand why the buzz started. The 5th Pay Commission had indeed recommended converting DA into Dearness Pay whenever inflation crossed 50 percent, and based on that, the government merged 50 percent DA with basic pay back in April 2004 . That memory lingers.
But here is what many miss. The 6th Pay Commission explicitly rejected this approach. It warned that merging DA would require resetting the inflation base, which would actually result in lower future DA rates . The commission firmly stated it was “not recommending the merger of Dearness Allowance with Basic Pay at any stage” . That reasoning still holds weight today.
The Current DA Situation in 2026
As of early 2026, DA stands at 58 percent following the July 2025 revision. The next hike for January 2026 is expected around March, likely taking DA to approximately 60 percent based on inflation data trends . This is a regular scheduled revision, not a precursor to merger.
What employees actually receive is this scheduled increase, not a structural change. The government has repeatedly confirmed that DA and Dearness Relief will continue rising every six months as before .
Why No Merger Now Makes Sense
Think about it this way. The 8th Pay Commission has been constituted and given 18 months to submit recommendations . Implementing a DA merger during this transition period would create complications when the new pay structure eventually arrives. Standard practice across previous pay commissions has been to merge accumulated DA only after applying the new fitment factor . Until then, salaries continue under the existing framework with regular DA hikes.
Employee unions are certainly pushing for merger as interim relief . Some have even proposed alternative formulas like merging 50 percent DA while letting the remainder continue . But the government’s stance remains unchanged, and a nationwide strike threatened for February 2026 indicates unions are not backing down easily .
What This Means for Your Salary
Practically speaking, you will continue receiving DA at the revised rates every six months. Your basic pay stays where it is for now, and allowances calculated on basic pay remain at current levels. When the 8th Pay Commission eventually implements its recommendations, likely around 2027-2028, the accumulated DA will merge into basic pay through the fitment factor mechanism .
Until then, rely on official announcements rather than speculative reports. The government speaks through parliamentary replies and finance ministry notifications, not through social media chatter.