The DA rate is adjusted every six months in accordance with the inflation rate.
New Delhi: The 8th Pay Commission is scheduled for implementation on January 1, 2026, continuing the tradition of launching a new pay commission every decade. The 7th Pay Commission was established in February 2014, and its recommendations took effect from January 1, 2016. Central government employees and pensioners had high hopes that Finance Minister Nirmala Sitharaman would declare the formation of the 8th Pay Commission during the Union Budget presentation in Parliament on July 23.
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Before the presentation of the Union Budget 2024-25, there was speculation in various media outlets that the Centre might declare the establishment of the 8th Pay Commission. Nevertheless, this announcement was not made. Expectations were also set that the government might declare a pension equivalent to 50% of the last-drawn salary under the New Pension System (NPS) for government employees. These employees have been advocating for the abolition of the NPS and the reinstatement of the Old Pension Scheme (OPS).
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Ultimately, there were no developments on these two fronts for central government employees.
TV Somanathan, the Union Finance Secretary, hinted in a post-Budget interview that the government may soon decide on the subject. He mentioned that the next pay commission is scheduled for 2026, and there is ample time since it is only 2024. Previously, the government had received two appeals regarding the establishment of the 8th Central Pay Commission. However, as of now, there is no proposal under consideration, as was reported to Parliament on Tuesday.
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“Two representations have been received for constitution of 8th Central Pay Commission in June 2024. No such proposal is under consideration of the government, at present,” said Minister of State for Finance Pankaj Chaudhary in a written reply in the Rajya Sabha.
To offset the diminishing real value of central government employees’ salaries due to inflation, a dearness allowance (DA) is provided. The DA rate is adjusted every six months in accordance with the inflation rate.
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