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The biggest misconception regarding the 8th Pay Commission was that the increase in DA, HRA and other allowances may stop after 2026, but the new update has made it completely clear that nothing like this is going to happen. The current DA is 58% and there will be three regular increases in the coming 18 months, based on the 7th CPC. Experts say that the recommendations of 8th CPC will come in 2027, but till then the increase in DA and HRA will continue as before.
New DelhiThere has been a big concern among the Central Government employees and pensioners for some time that after the implementation of the 8th Pay Commission, the increase in DA, HRA and other allowances may stop, The current DA is currently 58% which is applicable from July 1, 2025, But many posts on social media spread the wrong message that allowances will not be updated after January 2026,
Now with the new updates and expert input it is clear that this fear is completely useless. Not only will DA and HRA continue to rise, but DA will be revised thrice in the coming 18 months, as the 8th Pay Commission recommendations will come in mid-2027 and will be implemented retrospectively from January 2026. This means that until the new pay commission is implemented, the entire calculation will be based on 7th CPC.
Rumor of ban on DA, HRA and TA proved wrong
It has been clearly stated in the report that even after the arrival of 8th CPC, there will be no restriction in the existing allowance structure. DA will continue to increase every 6 months and HRA calculation will also continue on the same basic. Neither the allowances will be frozen nor will there be any confusion in the taxable component. This is a big relief update for both employees and pensioners.
How will DA be calculated: Expert explained
Ramachandran Krishnamoorthy, Payroll Services Director, Nexdigm, said that until the recommendations of the 8th Pay Commission are implemented, DA and other allowances will be calculated entirely on the basis of 7th CPC. He also told that DA increases twice a year, so there will be a total of three revisions between January 2026 and June 2027. According to him, if an average increase of about 3% every six months is considered on the current 58% DA, then it can go up to 61% after 6 months, 64% after 12 months and about 67% after 18 months. This is just an example, as the actual increase depends on CPI, but it is enough to show that the DA cycle will continue unabated.
Clear indication on the timeline of 8th Pay Commission
The report states that the recommendations of the 8th CPC are expected to come by mid-2027, and will be considered effective from January 1, 2026. That means, the salary of the employees will be calculated first as per 7th CPC, then later it will be adjusted as per 8th CPC. This means there will be no impact on the increase in allowance. DA increase for pensioners will continue in the same manner as it is now. DA plays a special role for pensioners as it directly affects their monthly income. It has been made clear in the report that there is no plan to stop or reduce pensioners’ DA.
8th pay commission team
The command of the 8th Pay Commission is in the hands of Ranjana Prakash Desai. She is a former judge of the Supreme Court and the chairperson of this commission. Apart from him, Professor Pulk Ghosh of IIM Bangalore has been appointed as a part-time member of the Commission. The third member of the team is Pankaj Jain. He is the member-secretary of the commission. Pankaj Jain, a 1990 batch IAS officer, is currently working as Secretary in the Ministry of Petroleum and Natural Gas.
