The 8th Pay Commission is set to reset the Dearness Allowance to 0% from January 2026 after merging it into revised basic pay, while Gramin Dak Sevaks receive a 2% DA hike to 60%.
Discussions surrounding the upcoming 8th Pay Commission are intensifying as the panel conducts meetings across various cities in India. With rising expectations among central government employees, a significant question looms: Will the Dearness Allowance (DA) be reset to zero once the 8th Pay Commission is implemented?
Currently, central government employees receive a DA of 60% under the 7th Pay Commission. Many are eager to understand whether this allowance will be eliminated after the new pay commission takes effect and how it will impact their salaries.
Dr. Manjeet Patel, National President of the All India NPS Employees Federation, has indicated that the DA will indeed reset to zero following the implementation of the 8th Pay Commission.
Dr. Patel elaborated that the 7th Pay Commission is set to conclude in December 2025, with the 8th Pay Commission expected to commence on January 1, 2026. He stated, “The 7th Pay Commission ends in December 2025. The 8th Pay Commission will be implemented from January 1, 2026. Once the new pay commission comes into force, the Dearness Allowance will become zero. After that, DA will again increase through the twice-a-year revisions.”
This indicates that the existing 60% DA will not persist separately under the new structure. Instead, it will be integrated into the revised basic salary before the new pay scales are introduced.
Under previous pay commissions, accumulated DA was typically merged with the basic pay prior to the introduction of a new salary structure. This process is expected to be replicated under the 8th Pay Commission.
Currently, the DA is approximately 60% of the basic salary. Once merged, the revised basic pay will already reflect this DA amount. Consequently, the new DA cycle will commence from zero.
Experts believe this process generally benefits employees for several reasons. Firstly, the revised basic salary will be higher. Secondly, future DA calculations will be based on the increased basic pay. Lastly, other allowances linked to the basic salary may also see an increase.
In a related development, the Department of Posts has announced a new DA hike for Gramin Dak Sevaks (GDS). According to an order issued on May 10, 2026, the DA for GDS employees has been raised by 2%, bringing it to 60% of the basic Time Related Continuity Allowance (TRCA). This increase follows the Union Cabinet’s decision to raise DA and Dearness Relief (DR) by 2% for central government employees and pensioners to help mitigate inflation.
As the 8th Pay Commission progresses, it is also important to note that a significant meeting is scheduled in Delhi on May 13 and 14. This gathering will involve various stakeholders, including representatives from the Ministry of Defence, Ministry of Railways, defence forces, railway unions, and registered employee organizations based in Delhi. The meeting is anticipated to play a crucial role in shaping salary revisions and employee-related recommendations under the upcoming pay commission.
As discussions continue, the implications of the 8th Pay Commission and the resetting of the Dearness Allowance remain a focal point for central government employees across the nation.
According to The Sunday Guardian.