8th Pay Commission: This rule related to DA will change! Dearness allowance will be reset to zero. Find out when and how much it will be..

8th Pay Commission: Millions of central government employees across the country are heartbroken. Numerous questions linger in their minds. What will the 8th Pay Commission's recommendations mean for them? How big will their salary increase be? When will the final recommendations be finalized? How will the government calculate Dearness Allowance (DA) this time? Sources suggest the government may change a 10-year-old rule and set the DA meter to zero.

What is the government's 'masterplan'?
Dearness Allowance (DA) is calculated based on data from the Consumer Price Index for Industrial Workers (AICPI-IW). This index has a base year against which inflation is compared.

Current Rules
The base year for calculating DA is 2016. This was set when the 7th Pay Commission was implemented.

Proposed Changes
Now that the 8th Pay Commission is scheduled to be implemented from January 1, 2026, the government may also change the base year for DA calculations to 2026.

In simple terms,
Changing the base year is like resetting the score of a game. When the base year is new, the calculation of dearness allowance also starts anew, i.e., from zero.

Why is the base year being changed?
Over the past decade, people's spending patterns, their needs, and the nature of inflation have completely changed. The things we spend on today are very different from those in 2016. Therefore, updating the base year becomes necessary to accurately assess inflation and provide real benefits to employees.

What will change in DA calculations?
Let's understand the differences between the current system and the new potential system through a table.

Parameters 7th Pay Commission (current system) 8th Pay Commission (probable system) DA base year 2016 2026 (probable) What happened to the old DA? 125% merged 60-61% (by January 2026). DA will be merged. Started from 0% Calculation base will remain at 0% 2016 prices, 2026 prices. Impact: Basic salary increased. The new basic salary will increase further

How will it work?
1. Step 1 - Merger
By January 1, 2026, your dearness allowance will have reached approximately 60-61%. Once the 8th Pay Commission is implemented, this entire DA will be added to your current basic salary. This will create your 'new basic salary', which will be significantly higher than before.

2. Step 2 - Reset
Once the old DA is added to your basic salary, the DA counter will be reset to 0%. Any subsequent dearness allowance increase will be calculated on this new and increased basic salary.

Example:
The same thing happened with the 7th Pay Commission. When it was implemented in 2016, the 125% dearness allowance was merged into the basic pay, and DA was reduced to zero.

What will be the impact on salary?
This change is beneficial for you. Why? Because when your future DA (e.g., 2%, 3%, 4%) is calculated on your new and higher basic salary, the amount you receive will be higher. This will lead to a faster increase in your total salary over time.

When will the 8th Pay Commission be implemented?
Panel formation: The government may soon form the 8th Pay Commission panel. Report: The panel is expected to take 18 months to submit its recommendations. Implementation: Regardless of when the recommendations come, it is expected to be implemented on January 1, 2026. That means you will also get the benefit of arrears.

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