8th Pay Commission : It should be mentioned here that the recommendations of the 8th Pay Commission will soon be put in front of the central government employees and pensioners. The members of the new pay commission are expected to be formed in April this year. The commission will deal with modifications related to the salaries and allowances of central officials. If the reports are to be believed, Dearness Allowance (DA) may be zero in the 8th Pay Commission. Currently, central employees get 53% DA of their basic salary.
8th Pay Commission Allowances Will Change
The biggest impact of the 8th Pay Commission will be that it will reduce the Dearness Allowance (DA) to zero which will now denote the same i.e. ‘0’. It is thought that the time the recommendations by the new Pay Commission are brought into effect, the prevailing DA could possibly be absorbed into the basic pay. And then the numbering of DA haval will start at zero. That is, after that government will boost DA twice a year. DA will be raised by an average of 7 to 8 percent every year.
When Will The New Pay Commission Come Into Existence?
As per the experts, the 8th Pay Commission will render its recommendations effective in January 2026, after which the DA will be made zero. After this, new DA will be added from July 2026 on the basis of AICPI index. That is, the first increase in DA will be on July 1, 2026.
Will DA And DR Be Added To The Basic Salary?
Earlier, the Fifth and Sixth Pay Commissions’ report (para 105.11) recommended combining DA with the basic salary and calling it dearness salary. Following this recommendation, in 2004, dearness pay was created when 50% of DA on the basic salary was merged for the purpose of computing allowances and retirement benefits. However, this was later reversed. This change will not be automatic but will require government decision-making. It is expected that the next Pay Commission, the 8th, will establish the DA at 0 percent and will add it into the basic salary.
This Is What The Government Said
At present, 53 percent of dearness allowances are being given to Central Government Employees. It will. When it was increased to 50 percent, it was expected to be added to the basic salary, and DA calculations would follow. But the government did not do that. It is expected that this merger will happen into the 8th Pay Commission.
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