DA Merger: This is some good news for employees. First of all, we put on record the news that recommendations by the Eighth Pay Commission will soon be put to place for the employees and pensioners of the Central Government. The members of the new Pay Commission are likely to be formed in April this year. This will change the salary and allowances of central employees. As per alleged reports, dearness allowance may become zero in the 8th Pay Commission. The central employees presently receive 53 percent DA on their basic salary. Read complete news here for full information on this update.
New Pay Commission For Changes In Allowances-
Dearness allowance will have the biggest impact under the 8th Pay Commission as it will be made zero. As per the above recommendations, the current DA will be included in the basic salary and the calculation of DA will begin from zero. The government will further increase the DA twice a year, which is expected to increase by an average of 7 percent to 8 percent every year.
When Will The New Pay Commission Be Implemented?
Experts are claiming that the recommendations of the 8th Pay Commission shall be implemented from January, 2026, on which dearness allowance will be made zero, after that new DA would be added on the basis of AICPI index from July 2026. Hence, the first increase in DA for employees will be on July 1, 2026. These changes will have their impact on financial scenarios.
Will DA And DR Be Merged To The Basic Salary?
Earlier fifth and sixth pay commissions had recommended merging DA with the basic salary, calling it as dearness salary. It happened that the 50% dearness allowance on the basic salary has been merged to form dearness pay for the purpose of allowance-calculation and retirement benefits in 2004 after the recommendation. However, this does not happen automatically. Government has to take a decision upon it. It is expected that dearness allowance would be zero in the 8th pay commission. Previously DA will be merged to the basic salary.
As The Government Stated,
The central employees have been getting dear mobility allowances of 53 percent currently. They would get it. When DA increases to 50 percent, it was believed that it would now be merged into the basic salary with the calculation of dearness allowance to be done separately. This, however, has not been done by the government. It is believable that this time it will be merged with the implementation of the 8th Pay Commission.
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