8th Pay Commission: Rs 9 Lakh Cr Burden Expected; No DA/DR Merger Yet

• The 8th Pay Commission will impact over 50 lakh central government employees and 65 lakh pensioners.
• If implemented in FY28, total payments for Centre and states could reach Rs 4 lakh crore, with arrears increasing the burden to Rs 9 lakh crore.
• The commission's report is expected in H2 2027, with recommendations applied retrospectively from January 1, 2026.
• There is currently no proposal to merge Dearness Allowance (DA) or Dearness Relief (DR) with basic pay.
• DA/DR will continue to be revised every six months based on the AICPI-IW index to protect real wages and pensions.

Why It Matters: This impacts millions of government employees' future earnings and national spending.