Saturday, January 25, 2025
HomePersonal Finance8th Pay Commission: Dearness Allowance will be zero again! Calculation will start...

8th Pay Commission: Dearness Allowance will be zero again! Calculation will start from zero for central employees

8th pay commission latest news today: The biggest impact of the 8th Pay Commission will be on the dearness allowance. The dearness allowance of central employees will be made zero. This means that as soon as the new pay commission is implemented, the dearness allowance will be made zero.

8th pay commission latest news today: The 8th Pay Commission has been approved by the Central Government. Soon its chairman and panel will also be formed. After this, there will be brainstorming on the new pay matrix of the employees. There is a hope of revision in the salary and allowances of central government employees and pensioners. For this, the recommendations of the Pay Commission will be implemented. But, the biggest impact on the arrival of the 8th Pay Commission will be on the dearness allowance. The dearness allowance of central employees will be made zero. Meaning, as soon as the new pay commission is implemented, the dearness allowance will be made zero.

Dearness Allowance (DA) will be merged in 2026

It is estimated that by January 2026, the dearness allowance (DA) will reach 63 percent. According to the rules, it has to be merged into the basic by making it zero only after it reaches 50 percent. But, it was not merged even when it was 50 percent. Now there is a discussion that when the recommendations of the new pay commission are implemented, the DA of the employees will be merged into the basic salary by making it zero (0). However, there is also a discussion that only 50 percent will be merged. The additional 13 percent will not be merged. Now the final decision on this has to be taken by the government. In such a situation, it has to be seen whether the government merges the entire 63 percent into the basic or not.

DA calculation will start from zero

After the implementation of the 8th Pay Commission, DA will be calculated on the new basic salary of central employees. It will start from 0. Suppose someone’s basic salary is Rs 34200, then from January 2026 his dearness allowance will be 0. Then in July 2026, 3-4 percent (whatever will be the dearness allowance) will be added to it. Further calculation will continue only after this. If dearness allowance becomes zero, then other allowances will also be affected.

Calculation of Dearness Allowance (DA)

When the 8th Pay Commission is implemented, dearness allowance will be added to the basic salary. If the dearness allowance is 50% or more, then there is a provision to merge it on the new pay commission. Dearness Allowance (DA) is calculated on the basis of Consumer Price Index (CPI). CPI changes from time to time, which also changes the DA. When the 8th Pay Commission is implemented, adding the current DA to the basic salary will increase the total salary of the employees. Suppose, in the current situation, the basic salary of an employee is ₹ 18,000 and dearness allowance is 50%, then the DA will be ₹ 9,000. When the 8th Pay Commission is implemented, if DA is added to the basic salary, then the total salary will be ₹ 27,000.

Why will dearness allowance be 0?

Whenever a new pay scale is implemented, the DA received by the employees is added to the basic salary. Experts say that although the rule states that 100% DA of the employees should be added to the basic salary, but this is not possible. Financial situation comes in the way. However, this was done in the year 2016. Before that, when the sixth pay scale came in the year 2006, at that time 187 percent DA was being given in the fifth pay scale till December. The entire DA was merged in the basic salary. Therefore, the coefficient of the sixth pay scale was 1.87. Then a new pay band and a new grade pay were also created. But, it took three years to give it.

When will dearness allowance be zero?

According to experts, when the 8th Pay Commission will be implemented in January 2026, then the dearness allowance will be made zero. In such a situation, the dearness allowance will be merged only then and it will be calculated from zero. Meaning, the AICPI index of January to June 2026 will decide whether the dearness allowance will be 3 percent, 4 percent or how much. As soon as this situation becomes clear, employees will be given dearness allowance beyond 0 percent.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments