8th Pay Commission Update: 70% DA Increase May Come First
Amid speculation, there's more good news for central government employees. It's believed their Dearness Allowance (DA) will increase by nearly 70% before the new salary structure is implemented.
Central government employees
Central government employees and pensioners are at a crucial juncture. While the 7th Pay Commission's recommendations are nearly complete, the 8th Pay Commission has not yet been implemented.
8th Pay Commission
The Narendra Modi government might implement the 8th Pay Commission this year. Amid this speculation, more good news has emerged for central government employees.
Dearness Allowance
It's thought their Dearness Allowance (DA) will rise by nearly 70% before the new salary kicks in. Sources say they might get DA three times until the new pay structure is implemented.
Government employees
Central govt employees usually get DA twice a year, in March and October. Sources say implementing the new pay scale will take until after March 2027, so employees hope to get DA three times by then.
Dearness Allowance
Currently, central government employees receive Dearness Allowance as per the 7th Pay Commission rules. It's 58% of the basic pay. Usually, DA increases by two to four percent.
DA Hike
By that calculation, the DA is likely to be at least 60% in March. By October this year and March 2027, it could increase to nearly 70%.
Pay Commission
According to official data, the DA hike was highest during the 6th Pay Commission (2006-16). Central govt employees received 125% of their basic pay as DA during that period.
8th Pay Commission
During the 5th Pay Commission (1996-2006), DA increased by 74%. Comparatively, the DA hike has been much slower and lower in the 7th Pay Commission.
DA Growth Rate
In 2020, during the COVID pandemic, the center froze DA for 18 months. The Modi admin later paid the arrears, but it slowed the DA growth rate. The 8th Pay Commission is keen to avoid this.
8th Pay Commission
The center formed the 8th Pay Commission last November. The Modi government has given it 18 months to submit a report on the new salary structure. So, the new pay scale is unlikely to start before mid-2027.
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.
