The Federation of National Postal Organisations (FNPO) has formally written to the Chairperson of the 8th Central Pay Commission (CPC), Justice Ranjana Prakash Desai, demanding the merger of 50% Dearness Allowance (DA) with basic pay effective from January 1, 2026.
In a letter dated February 27, 2026, FNPO argued that since the current DA has already crossed 50% of basic pay, it is time to merge it with the basic salary as an interim relief measure, pending the final recommendations of the 8th CPC.
Key Demands of FNPO:
Merger of 50% DA with Basic Pay effective from January 1, 2026
Treating the DA merger as interim relief (not a final revision)
Boosting HRA, pension, gratuity and other pay-linked benefits as a result
FNPO pointed out that historically, whenever DA crossed 50% in earlier Pay Commission regimes, a portion of DA was merged with basic pay to provide structural pay correction and guard against inflation erosion.
The 8th CPC, chaired by Justice Ranjana Prakash Desai, has been given 18 months from November 3, 2025 to submit its final report. The commission is expected to submit its recommendations by mid-2027, with revised pay likely effective from January 1, 2026 with arrears.