In a significant development regarding the central government employees, the Centre has taken a crucial step forward towards establishing the 8th Pay Commission by approving its Terms of Reference (ToR). The decision is important, as it has infused hope among employees regarding the implementation of the 8th Pay Commission. Notably, the government has also issued an official clarification amidst rumours floating on social media that, after the implementation of the 8th Pay Commission, House Rent Allowance (HRA), Dearness Allowance (DA), and other benefits would be discontinued.
HRA won't be scrapped
In a significant relief, the Finance Ministry has termed all these rumours completely baseless, stressing that there is no such plan. It implies that DA and other allowances will be continued even after the 8th Pay Commission kicks in.
The final report of the 8th Pay Commission is likely to see the light of day in approximately 18 months. Meanwhile, central government employees will continue to receive dearness allowance (DA) as per the 7th Pay Commission rules, with regular increases. According to experts, DA may see a significant jump during this period.
Here's a list of main points concerning DA:
- DA will be revised three times (every 6 months) over the period of the next 18 months.
- Going by the estimated increase, if DA gets increased to 4 per cent each time, the total increase will be 12 per cent.
- The current DA is 58 per cent (as per the current rate).
- Estimated DA after 18 months may reach almost 70 per cent (58 per cent + 12 per cent).
As the Central Government has formally approved the Commission's Terms of Reference, the Commission's team is expected to submit its detailed report to the Central Government within 18 months. The report will address issues, such as the increase in salaries, pensions, and allowances.
As Central employees await the Commission's report and the implementation of the new pay scales without any confusion, they need to refrain from relying on social media buzz and instead rely on the government's official statement.
