New Delhi, January 24: With the Modi government announcing the 8th Pay Commission, discussions are heating up among 50 lakh central government employees and 67 lakh pensioners about possible pay hikes and the fate of their Dearness Allowance (DA). A major question is whether DA will be reset to zero under the new pay structure, as it was in previous pay commissions.

Currently, the DA stands at 53% of basic pay, with further hikes expected in January and July 2025. By January 2026, when the 8th Pay Commission’s recommendations are likely to take effect, DA could be merged with basic pay and reset to zero, a practice followed under earlier pay commissions. For instance, when the 7th Pay Commission was implemented in January 2016, DA, which had reached 125%, was merged into the basic pay. 8th Pay Commission Salary Calculator: How Much Salary Hike Can Central Govt Employees Expect? Check Calculation.

Union Minister Ashwini Vaishnaw has stated that the government plans to implement the 8th Pay commission’s recommendations on time. If the panel’s report is finalised and implemented before January 2026, DA at that time will likely be merged into the basic pay, and the new DA cycle will begin afresh. However, if implementation is delayed, an additional DA hike could precede the merger, potentially leading to retrospective salary and pension adjustments. 8th Pay Commission Pension Calculator: How Will Pension Hike Impact Central Govt Employees? Know About Fitment Factor and Other Key Details.

The expected pay hike depends on the fitment factor, which may range from 1.92 to 2.86. If set at 2.86, the minimum basic salary could rise from inr 18,000 to INR 51,480, and pensions could increase from INR 9,000 to INR 25,740.

As anticipation grows, employees and pensioners eagerly await clarity on the commission’s recommendations and the government’s timeline for implementation, which will directly impact their financial future.

(The above story first appeared on LatestLY on Jan 24, 2025 11:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).