8th Pay Commission: The Central Government had approved the formation of 8th Pay Commission in January. The timeline of the 7th Pay Commission (7th Pay Commission) will end on 31 December 2025. At the same time, new pay-work is to be implemented from 1 January 2026. However, after the formation of the panel, its final report may take about 15-18 months. According to sources, the panel can submit its recommendations by April-May 2026.
However, the final report will take some more time to arrive. For this, it is expected to be implemented by the year 2027. However, will the Dearness Allowance be merged into the basic salary when the new Pay Commission arrives or can the situation remain the same? It is also discussed that the government can change the Calculation of dearness allowance at new pay-work. For this, the base year of dearness allowance can be changed.
Panel can be made in May
The wait for central employees is about to end. A panel of the 8th Pay Commission may be formed in early May. The government gave it the green signal in January itself.
When will the new pay commission be implemented?
The period of the 7th Pay Commission is ending on 31 December 2025. The new commission is to be implemented from 1 January 2026. However, the final report may take 15-18 months to arrive, that is, the execution can also be drawn till 2027.
Will the existing Da be merged in basic salary?
The biggest discussion is whether the existing dearness allowance (DA) will be added to the basic salary when the new Pay Commission arrives or will all be the same?
Will DA calculation change the whole way?
Another big discussion is that the government can change the method of calculation of dearness allowance in the 8th Pay Commission.
The ‘base year’ of dearness allowance may change
If sources are to be believed, the government can change the base year for DA calculation. This will change the entire calculation.
Right now the base year for DA is 2016
Currently, dearness allowance is calculated on the basis of AICPI-IW index and its base year 2016. This was changed when the 7th Pay Commission was implemented.