8th Pay Commission: The Federation of National Postal Organizations (FNPO) has raised this issue to ease the burden of inflation on government employees. It has suggested implementing it as an “interim relief.”
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8th Pay Commission: As time passes, new news is emerging regarding the 8th Pay Commission. Now, another new update has emerged, which is useful for central employees and pensioners. In fact, another major demand has been raised to reduce the burden of inflation on government employees.
The Federation of National Postal Organizations (FNPO) has sent a letter to Justice Ranjana Prakash Desai, Chairperson of the 8th Pay Commission. The FNPO has demanded that the government integrate 50 percent dearness allowance (DA) into the basic pay. It has suggested implementing this as an “interim relief” from January 1, 2026.
The Rationale for Merging DA with Basic Pay
FNPO, an organization for postal employees in India, stated that food prices have risen in the past few years, medical treatment expenses have increased, and the price of petrol and diesel has also risen sharply, putting a strain on the pockets of employees and pensioners.
It was reported that when DA previously crossed the 50% mark, the Pay Commission recommended merging a portion of it with basic pay to mitigate the impact of inflation.
FNPO also stated that since benefits such as HRA (House Rent Allowance), transport allowance, and gratuity depend on basic pay, merging DA will increase these benefits as well, resulting in long-term financial benefits for employees.
It was also argued that the announcement and implementation of the final recommendations of the 8th Pay Commission may take a considerable amount of time. This interim measure is necessary to provide relief to employees until then.
There will be a major change in the salary structure.
If the government accepts this demand from employees, HRA will increase. As basic pay increases, your house rent allowance will also increase. This will prove beneficial for retiring employees because pension and gratuity will be calculated based on the revised basic pay, resulting in an increased payment. Additionally, all other pay-linked allowances will also increase.
Suppose your basic salary is ₹20,000 and DA is 50%, you will receive ₹10,000 DA. Merging DA with basic pay will bring your total salary to ₹30,000. This means that the ₹10,000 received under DA will be added to your basic salary. As basic salary increases, all other allowances will also increase. In addition to HRA, PF contributions will increase, and gratuity received after retirement will increase.
In future, if DA increases again by 3 or 4 percent, it will be calculated on the new basic pay (30000) instead of the old basic pay (20000).
