8th Pay Commission: Employees’ DA, HRA, and travel allowance will be discontinued? affecting 1 crore employees.
8th Pay Commission: The Central Government has issued the Terms of Reference (ToR) for the 8th Pay Commission. This makes it clear that the new Pay Commission has been officially constituted.
8th Pay Commission: The Central Government has issued the Terms of Reference (ToR) for the 8th Pay Commission. This makes it clear that the new Pay Commission has been officially constituted. A three-member team, led by Justice Ranjana Desai, will submit its recommendations. The government has given the Commission 18 months to submit its report. It is expected that its report will be submitted to the government by mid-2027. After this, the Cabinet will discuss and approve the recommendations. Employees are concerned about whether the 8th Pay Commission will result in the discontinuation of their DA, HRA, or travel allowance.
When will the recommendations be implemented?
Although the report will be released in 2027, the important thing is that the recommendations of the 8th Pay Commission will be considered effective from January 1, 2026. This means that employees and pensioners will receive the benefits of the new salary later, but arrears will be calculated from January 1, 2026.
The biggest concern of the employees is – will DA, HRA, TA be stopped after January 1, 2026?
Many central government employees and pensioners fear that when the 8th Pay Commission is implemented, allowances like DA (Dearness Allowance), HRA (House Rent Allowance), and TA (Travel Allowance) will be discontinued. Currently, the DA is 58%, effective July 1, 2025. The next increase in DA will be implemented on January 1, 2027.
Did the government say this?
Many experts believe that DA, HRA, TA, and other allowances will not be completely discontinued. Until the 8th Pay Commission is implemented, all these allowances will continue to be based on the 7th Pay Commission. DA will also continue to be increased every six months.
DA Hike – What will happen in the next 18 months?
Ramachandran Krishnamurthy, Payroll Director at Nexdigm, stated that the Pay Commission report will take at least 18 months to be prepared. During this period, DA will be increased three times, as DA is increased every six months. For example, if each DA increase is assumed to be approximately 3%, then the current DA is 58%.
Current DA = 58%
After the next six months = 61%
After the next twelve months = 64%
After 18 months = 67%
(This is just an estimate; the actual increase will depend on CPI.) It is possible that the DA may increase more or less than this.
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