8th Pay Commission HRA: The central government has given the green light to the Terms of Reference (ToR) for the 8th Pay Commission. It’s expected that the team set up for this commission will present a report to the central government within 18 months about salary and pension hikes. As we wait for the commission’s findings, central employees have a lot of questions, with the main one being whether HRA will be cut under the 8th Pay Commission. If you’re also looking for clarity on this, let’s dive into whether HRA-DA is actually going to be scrapped under the 8th Pay Commission or not.
Will HRA-DA be discontinued?
Experts say that not just TA-DA, but HRA and all other allowances for central employees will keep on being provided. There’s still some time before the 8th Pay Commission kicks in, so for now, all allowances will continue as per the 7th Pay Commission. Additionally, DA is set to rise every 6 months, meaning it will go up three times in the next 18 months.
For instance, if DA goes up by 4 percent each time, then after 18 months, it will have increased by 12 percent over those 6-month intervals. Right now, central employees receive a 58 percent DA, so after 18 months, that will jump to 70 percent.
In the meantime, there’s a rumor circulating on social media that retired employees and pensioners will lose their dearness allowance (DA) and other benefits from the Pay Commission once the 8th Pay Commission is in place. However, the government has made it clear that there are no such intentions.
The Finance Ministry has stated that DA and other allowances will remain unchanged and will not be impacted by the Finance Act 2025. This government announcement confirms that allowances, including HRA, will not be cut after the 8th Pay Commission is rolled out. Meanwhile, a message is spreading on social media that retired employees and pensioners will lose their dearness allowance (DA) and other Pay Commission benefits after the 8th Pay Commission is implemented.
However, the government has clarified that there are no such plans. The Finance Ministry stated that DA and other allowances will continue as before and will not be affected by the Finance Act 2025. This government statement makes it clear that allowances, including HRA, will not be discontinued after the 8th Pay Commission is implemented.