Will DA Stop After 2025? A Simple Explainer on 8th Pay Commission, Past Practices, and Legal Background
By Lokanath Mishra:
As the 7th Central Pay Commission (CPC) completes its term on 31 December 2025, many central government employees are wondering what happens next—especially to Dearness Allowance (DA). The 8th CPC has already begun its work, and this transition period has created understandable confusion.
This explainer puts all the information in one place:
What the rules say, what history shows, what the Constitution provides, and what courts have held about pay and pension.
- What Exactly Is DA? Why Is It Important?
Dearness Allowance (DA) is the amount added to salaries of central employees to help them cope with inflation.
Similarly, Dearness Relief (DR) is given to pensioners.
DA is usually revised twice a year:
• January
• July
The formula is based on the Consumer Price Index for Industrial Workers (CPI-IW).
DA is not a bonus—it is a part of the government’s inflation-protection system.
- Does DA Stop When a Pay Commission Ends?
No. DA has NEVER been stopped in the history of India’s pay commission system.
Let’s look at what happened in each transition.
- A Quick Look at 1st to 7th Pay Commissions
1st CPC (1946–47)
• DA began as a system of cost-of-living allowance.
• Even during economic difficulties, DA continued to be adjusted.
2nd CPC (1957–60)
• Recommended a more structured DA system linked to price index.
3rd CPC (1970–73)
• Recommended merging part of DA into basic pay when it crossed certain levels.
4th CPC (1983–86)
• Introduced the concept of “additional DA slabs.”
• DA kept continuing during the transition.
5th CPC (1994–97)
• Recommended merger of 50% DA with basic pay (ultimately approved in 2004).
• DA was revised regularly until the 6th CPC was implemented.
6th CPC (2006)
• Government approved the report in 2008 but applied it retrospectively from 1 Jan 2006.
• DA continued as usual between 2006–2008.
7th CPC (2016)
• Approved in June 2016, but effective from 1 Jan 2016.
• DA continued without interruption.
The Pattern Is Crystal Clear
✓ DA always continues even after a Pay Commission cycle ends.
✓ New DA starts from 0% after the new CPC is implemented.
✓ Any accumulated DA is merged with new basic pay.
There has never been a break in DA payments just because a new CPC was being prepared.
- So, What Happens After December 2025?
Based on 70 years of practice:
✔ DA will continue normally in January 2026 and July 2026
even though the 7th CPC cycle ends on 31 December 2025.
✔ DA will be calculated on the existing 7th CPC basic pay.
✔ When the 8th CPC is implemented (likely 2027–28), DA will reset to 0%.
✔ There is no rule or precedent that allows the government to pause DA.
Unless a brand-new official order is issued (which is extremely unlikely), DA will continue in 2026, 2027, and until the 8th CPC comes into force.
- Will the 8th CPC be Implemented from 1 January 2026?
What History shows :
6th CPC
2008
1 Jan 2006
7th CPC
2016
1 Jan 2016
Thus, even if the 8th CPC is finalised later (2027 or so), it is highly likely to be made effective from 1 January 2026, maintaining the 10-year cycle.
- What Do Courts Say About Pay and DA?
While Indian courts do not fix salaries, they have repeatedly held some important principles:
a) Right to Pension Is a Constitutional Right
The Supreme Court’s famous D.S. Nakara vs Union of India (1983) judgment held:
• Pension is not a gift or bounty
• It is a right flowing from the Constitution and statutory rules
• Any arbitrary cuts or discrimination are unlawful
b) Fair Wages and Equality
Under Articles 14, 16, and 21, pay must be:
• Non-arbitrary
• Non-discriminatory
• Reasonable enough to sustain dignity of life
c) DA Is a Part of Service Conditions
The Supreme Court has consistently indicated (in multiple service-related cases) that:
• DA/DR is part of the “conditions of service”
• Service conditions cannot be changed arbitrarily
• Governments must protect employees from inflationary pressure
These principles strongly support continuity of DA, especially during pay commission transitions.
- What Does the Constitution Say?
Several constitutional provisions indirectly protect pay, DA, and pension:
Article 14 – Equality before law
Government cannot create arbitrary distinctions between old and new employees during transitions.
Article 16 – Equality in public employment
Service benefits (like DA) must be fair, uniform, and reasonable.
Article 21 – Right to live with dignity
Courts interpret this broadly—including economic dignity of pensioners and employees.
Article 309 – Power to make service rules
Pay Commissions work under this authority.
Until new rules are made, existing rules continue.
This means DA rules remain valid until changed by a new, official notification.
- Conclusion — The Most Important Takeaways
✔ DA will NOT stop after December 2025.
There is no precedent, no policy, and no legal basis for pausing DA.
✔ DA will continue twice yearly (Jan & July) until 8th CPC is implemented.
✔ 8th CPC is expected to be effective from 1 January 2026, even if implemented later.
✔ The Constitution and Supreme Court principles support continuity of pension and DA.
✔ Past 1st–7th CPC practices clearly show that DA remains uninterrupted during transitions.
In short, employees and pensioners need not worry—the longstanding system of DA revision is expected to continue smoothly.