New Delhi, November 21: The Central government has taken a major step toward implementing the 8th Pay Commission by formally approving its Terms of Reference (ToR), bringing clarity and fresh hope to nearly one crore Central government employees and pensioners. The approval signals the beginning of an 18-month timeline within which the Commission is expected to prepare and submit its detailed recommendations on salary revisions, pensions, and allowances.

Amid this development, the Finance Ministry has issued a strong clarification to counter widespread rumours circulating on social media. Several posts had claimed that once the 8th Pay Commission comes into effect, benefits such as House Rent Allowance (HRA), Dearness Allowance (DA), and other allowances would be scrapped. The government has categorically rejected these claims, calling them “baseless” and reiterating that no such proposal is under consideration. This assurance has come as a major relief for employees, many of whom were worried about a potential reduction in take-home pay under the new structure. 8th Pay Commission Update: Central Government Employees’ Unions Slam ‘Unilateral’ Terms of Reference, Demand Clarity on Pension Revision, Benefits and Implementation Timeline.

Until the 8th Pay Commission’s recommendations are implemented, employees will continue receiving DA under the existing 7th Pay Commission framework. As per expert estimates, DA is expected to witness a considerable rise over the next 18 months due to the bi-annual revision cycle. 8th Pay Commission: What SSC Employees Can Expect From the 2026 Salary Revision; Know Detailed Timeline, Fitment Factor and Post-Wise Expected In-Hand Pay.

Key Points About Expected DA Increase

  • DA will be revised three times during the 18-month period (once every six months).

  • If DA increases by around 4% each cycle—based on current inflation trends—the total rise may amount to 12%.

  • The existing DA rate is 58%.

  • After the upcoming three revisions, the estimated DA could reach nearly 70%.

The 8th Pay Commission’s final report will comprehensively cover proposed changes in basic salaries, grade pay, pensions, and various allowances. Once submitted, the government will examine the recommendations before announcing the final implementation schedule.

For now, the Centre has urged employees to avoid speculation triggered by social media posts and to rely solely on official government communication. With the process formally underway, Central employees can expect greater clarity on new pay structures in the coming months, without any changes to their existing allowances during the transition period.

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(The above story first appeared on LatestLY on Nov 21, 2025 03:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).