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Suspense Crime,Digital Desk:8th Pay Commission:The 8th Pay Commission will be established in January because the central government accepted its formation. The 7th Pay Commission will be operational until December 31, 2025. A new commission is expected to take effect from January 1, 2026. Once the panel is formed, it is expected to spend approximately 15-18 months for the final report. Sources suggest the panel is likely to complete its recommendations by April-May 2026. Even though supplementary changes will be made, the final report is predicted to be completed in 2027. The merge of basic salary with the dearness allowance still remains to be seen, as does the dearness allowance policy under the new pay commission questions. One possible change legislature may propose is altering the base year of dearness allowance to set a new base year for calculating the dearness allowance.
Panel can be formed in May
The speculation regarding the 8th Pay Commission panel is that it could be finalized around May. Central employees will also receive their new salaries around this period. The government is already taking action.
Changes proposed in the 8th Pay Commission are expected to be brought over in 2025-2026 fiscal years, but no one knows if it will be in early or mid 2026.
The starting period of the 8th Pay Commission is subject to change but is intended to occur after the completion of the 7th’s term on December 31, 2025. The new commission is purported to be active starting from January 1, 2026, however the plan of conception should only be ready by mid 2026.
Will the existing DA be merged into the basic salary?
The key factor remains whether all components of dearness allowance (DA) will be factored in when determining the basic salary during the next pay commission cycle.
Will the entire method of DA calculation change?
Another possibility the government has on the table for discussion within the 8th Pay Commission is the change of method for the calculation of dearness allowance.
Potential changing da base year
If the sources deliver the news which shows speculation, so goes the idea that the government shifts base year parameters for the calculation of DA. Such changes will alter the entirety of the computation.
Currently the base year for DA is 2016
For now the base year for dearness allowance is 2016, which was only set while a icpi iw index enables DA calculation serviced through the AICPI-IW index وتر اعماله لأ داست الإي إươb with Duplicated service Indicators and update for social issues were after seventh pay commission.
Raising inflation is the main reason.
As the inflation rate seems to be growing each decade, it is obvious that the base year of 2016 is too long to be useful. That is why changing the base year will ensure an accurate rate of inflation.
Maybe a new base year will be in 2026.
Furthermore, it is believed that the first of January in 2026 gives the government great chances of setting 2026 as a new planned base target year in alignment with the 8th Pay Commission deadline.
DA will become “zero”; new calculation will start.
By changing the base year, the current allowance for inflation of wages will be zeroed out and the recalculation of allowance for inflation of wages will begin again based on the new base year.
Will the old DA be added to the basic?
And the projections of the current DA suggest it might reach 61% by January 2026. This indicates that if the base year is changed, this “old” DA figure would be added to the revised basic salary and even after the reassessment, it would be included. Also, these are mere assumptions.
This is what happened in 2016.
When the 7th Pay Commission was working in January 1, 2016 merging it with 125% DA basing the assumption that it would be set as the new basic salary enabling Zero DA to be set to Basic salary to substantiating it further.
The system of grade pay was also scrapped.
The seventh pay commission (‘Basic Pay’ was formulated in the seventh pay commission by integrating the ‘Pay in the Pay Band’ and ‘Grade Pay’ components of the sixth commission with the basic and 125% DA from the previous system).
Seventh commission also established a new matrix structure for thheirot her pay and decided alternative ‘Basic Salary’ to ‘Pay Level Matrix.’
Seventh commissioned also added a new matrix for managing rearranging the order of increments and promotions to bring some clarity in determination and distribution of salary.
Now waiting for the specific recommendations from the panel.
Everything remains uncertain for now and can only draw conclusions based on different information sources. The actual situation will materialize only when the eighth commission panel rolls out its suggestions.
DA (dearness allowance) and other health benefits allowance without salary increase.
Evaluating every bit of information relatedto the twelfth eighth Pay Commission is crucial to determine the amount of salary hike and the flat rate for the DA. This becomes conclusive only after the panel delivers its report.
