8th Pay Commission: There will be a big change in dearness allowance! Complete calculation will change, check new update
8th Pay Commission: The central government approved the formation of the 8th Pay Commission in January. The timeline of the 7th Pay Commission will end on 31 December 2025. At the same time, the new pay commission is to be implemented from January 1, 2026. However, after the formation of the panel, it may take about 15-18 months for its final report to come. According to sources, the panel can submit its recommendations by April-May 2026. But, it will take some more time for the final report to come. For this, it is expected to be implemented by the year 2027. But, will the dearness allowance be merged with the basic salary when the new pay commission comes or can the situation remain as it is? There is also a discussion that the government can change the calculation of dearness allowance on the new pay commission. For this, the base year of dearness allowance (DA Base year) can be changed.
Panel can be formed in May
The wait of central employees is about to end. The panel of the 8th Pay Commission may be formed in early May. The government had given it the green signal in January itself.
When will the new Pay Commission be implemented?
The term of the 7th Pay Commission is ending on 31 December 2025. The new commission is to be implemented from 1 January 2026. However, it may take 15-18 months for the final report to come, that is, the implementation may also be delayed till 2027.
Will the existing DA be merged into the basic salary?
The biggest discussion is whether the current dearness allowance (DA) will be added to the basic salary when the new pay commission comes or everything will remain the same?
Will the entire method of DA calculation change?
Another big discussion is that the government can change the method of calculation of dearness allowance in the 8th pay commission.
The ‘base year’ of dearness allowance can change
If sources are to be believed, the government can change the base year for DA calculation. This will change the entire calculation.
Currently the base year for DA is 2016
At present, dearness allowance is calculated on the basis of AICPI-IW index and its base year is 2016. It was changed when the 7th Pay Commission was implemented.
Rising inflation is the major reason
Experts believe that inflation has increased rapidly in the last decade. Therefore, the current base year (2016) is now outdated. The new base year will give a correct estimate of inflation.
The new base year may be 2026
It is expected that when the 8th Pay Commission will be implemented (1 January 2026), the government can make the same year i.e. 2026 as the new base year.
DA will become ‘zero’, new calculation will start
If the base year is changed, the current dearness allowance will become zero and the calculation of DA will start afresh on the basis of the new base year.
Will the old DA be added to the basic?
It is estimated that the current DA can reach 61% by January 2026. If the base year changes, then this old DA can be merged into the basic salary. However, these are just speculations.
This happened in 2016 as well
When the 7th Pay Commission was implemented on 1 January 2016, 125% DA was merged into the basic salary and DA was made zero.
The ‘grade pay’ system was abolished
The 7th Pay Commission had created a new ‘Basic Pay’ by combining the ‘Pay in the Pay Band’ and ‘Grade Pay’ of the 6th Pay Commission, which included the old basic and 125% DA.
The 7th Commission gave a new pay matrix
During this time a new pay matrix was introduced which made the salary structure and promotion method more clear.
Waiting for the panel’s recommendations
All these things are currently based on possibilities and sources. The real picture will be clear only when the panel of the 8th Pay Commission gives its recommendations.
Will the salary increase or will the DA formula change?
Every small and big update related to the 8th Pay Commission, how much will be the increase in salary and what will happen to DA, all this will be decided only when the panel submits its report.
The post 8th Pay Commission: There will be a big change in dearness allowance! Complete calculation will change, check new update first appeared on informalnewz.
News