FNPO Demands 50% DA/DR Merger with Basic Pay and Pension and Additional Interim Relief from 01.01.2026 – Representation to 8th Central Pay Commission

FNPO DEMANDS MERGER OF 50% DA/DR WITH BASIC PAY/PENSION AND ADDITIONAL INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS

FNPO submits fresh representation to the 8th Central Pay Commission seeking immediate financial relief amid rising inflation and war-related economic disruptions.

Doonload 8th Central Pay Commission

The Federation of National Postal Organisations (FNPO) has once again raised an important demand for the financial protection of Central Government employees and pensioners by submitting a detailed representation to the Chairperson of the 8th Central Pay Commission, Smt. Justice Ranjana Prakash Desai, on 3rd November 2026.

The representation was submitted by Shri Sivaji Vasireddy, Secretary General, FNPO, requesting the Commission to recommend the merger of 50% Dearness Allowance (DA) with Basic Pay and 50% Dearness Relief (DR) with Basic Pension, along with the grant of additional Interim Relief (IR), pending implementation of the recommendations of the 8th Central Pay Commission.

The demand has been raised in view of unprecedented inflation, increasing prices of essential commodities and economic disruptions arising from ongoing international conflicts and war-related developments.

1. Precedents Set by Earlier Pay Commissions

FNPO has pointed out that the provision of Interim Relief during the intervening period of pay revision is not new. Earlier Pay Commissions had recognised the importance of providing financial relief to employees before the implementation of revised pay structures.

The representation highlights the following precedents:

• 4th Central Pay Commission: Recommended Interim Relief at 10% of Basic Pay, subject to a minimum of ₹50 per month, effective from 01.03.1985.
• 5th Central Pay Commission: Recommended Interim Relief at 10% of Basic Pay, subject to a minimum of ₹100 per month, with further instalments subsequently granted.
• 6th Central Pay Commission: Its Terms of Reference specifically included examining the desirability and need for granting Interim Relief pending final recommendations.

Citing these precedents, FNPO has emphasised that Interim Relief is an important mechanism to protect the purchasing power of employees and pensioners while awaiting comprehensive pay revision.

2. Rising Inflation and War-Related Economic Disruptions

The representation draws attention to the difficult economic conditions arising from ongoing international conflicts, particularly in the Middle East, geopolitical tensions and disruptions in global supply chains and international trade routes.

The resulting increase in energy prices, crude oil, shipping and transportation costs has placed additional pressure on the prices of essential commodities.

Employees and pensioners are facing increased expenditure on:

• Food grains, pulses and vegetables.
• Edible oils and LPG.
• Electricity and medicines.
• Healthcare and education.
• House rent and daily household necessities.

The representation also refers to the World Bank's Commodity Markets Outlook dated 28.10.2026, which projects a 23% increase in overall commodity prices during 2026, with energy prices projected to rise by 32%.

It further cites India's September 2026 retail inflation at 5.54%, while food inflation stood at 7.74%.

FNPO has pointed out that these developments have considerably increased the financial burden on salaried employees and pensioners, resulting in a continuous erosion of their purchasing power.

3. DA/DR at 63% – Need for Immediate Financial Relief

The representation highlights that Dearness Allowance and Dearness Relief have reached 63% with effect from 01.07.2026.

FNPO argues that the present situation clearly demonstrates the need for structural correction in the existing pay and pension arrangements.

Employees and pensioners should not be compelled to wait until the final implementation of the 8th CPC recommendations while continuously facing inflationary pressures and increasing household expenses.

Therefore, immediate interim financial relief has become essential.

4. Three Major Demands Placed Before the 8th CPC

FNPO has earnestly requested the 8th Central Pay Commission to recommend the following measures:

1. Merger of 50% DA/DR

Merger of 50% Dearness Allowance with Basic Pay and 50% Dearness Relief with Basic Pension, with effect from 01.01.2026.

2. Additional Interim Relief

Grant of additional Interim Relief to all Central Government employees and pensioners on the lines of the 4th and 5th Pay Commission precedents, pending implementation of the 8th CPC recommendations.

3. Financial Benefits from 01.01.2026

Extension of the above benefits with effect from 01.01.2026, with appropriate adjustments while implementing the final pay and pension revision.

5. FNPO Seeks Early and Favourable Consideration

Concluding its representation, FNPO has requested the 8th Central Pay Commission to appreciate the extraordinary financial difficulties faced by Central Government employees and pensioners due to war-related economic disruptions, rising prices of essential commodities and continuing inflation.

The Federation has sought an early and favourable recommendation to provide meaningful interim financial relief to lakhs of Central Government employees and pensioners.

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