8th Pay Commission : The government had announced the 8th Pay Commission in January 2025. Since then, discussions have intensified among central employees and pensioners regarding the increase in salary and pension.
It is expected that in the 8th Pay Commission, DA may be merged with the basic salary. Also, there may be an increase in the structure of allowances.
Proposal to increase medical allowance three times
During the 34th SCOVA meeting held in Delhi on 11 March 2025, an important proposal came up regarding the fixed medical allowance of pensioners. In the meeting, it was suggested that the current medical allowance of Rs 1,000 should be increased to Rs 3,000 per month. Pensioners have been demanding an increase in this allowance for a long time in view of rising inflation and medical expenses. Now it has been recommended to include this proposal in the terms of reference of the 8th Pay Commission. It is believed that this change can come into effect from January 1, 2026.
There may be an increase in HRA and other allowances
It was also made clear in the SCOVA meeting that apart from salary, other allowances like House Rent Allowance (HRA), Travel Allowance (TA), Dearness Allowance (DA) and Medical Allowance should also be reviewed. If media reports are to be believed, employees living in metro cities are likely to get more HRA. At the same time, the calculation of travel allowance for employees posted in rural and semi-urban areas can be done in a new way. Along with this, the government is also considering abolishing some old allowances so that the system can be made better.
Will DA be merged into basic salary?
In the 7th Pay Commission, the fitment factor was set at 2.57. Then the minimum salary was fixed at Rs 18,000. Now it can go up to Rs 27000. In the 8th Pay Commission, the basic salary can be merged with DA. At present, the outline of the commission and the TOR are yet to be finalized. Usually, the time from the formation of a pay commission to the implementation of its recommendations is 18 to 24 months. In such a situation, the implementation date which is expected to be on 1 January 2026, now it seems that this date can also be extended.
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