Overview
- The finance ministry told the Lok Sabha the commission was constituted with Terms of Reference on November 3, 2025 and must submit recommendations within 18 months.
- The government said the implementation date will be decided later and that funds will be provided only for recommendations it accepts.
- There is no proposal at present to merge dearness allowance or dearness relief with basic pay, with DA and DR currently at 55% as per recent revisions.
- Analyst estimates cited by media project a combined Centre–state payout increase of about Rs 4 lakh crore in FY28, potentially rising to roughly Rs 9 lakh crore with arrears, which remains an external projection.
- Reports note past practice of making pay revisions effective from January 1, 2026 for this cycle, implying possible arrears, though the government has not confirmed any start date.