Lakhs of central employees are eagerly waiting for the announcement of the 8th Pay Commission. But along with this, a big question is whether many allowances will be abolished this time too? This happened in the last 7th Pay Commission as well, when 88 types of allowances were either abolished or merged with other allowances.
7th pay commission decision
The 7th Pay Commission had found in its review that central government employees get about 196 types of allowances, many of which were not very effective. The commission had recommended abolishing 52 allowances completely and merging 36 with other allowances. The government had accepted this, so that the salary system could be made even simpler and transparent.
What are the expectations from the 8th Pay Commission?
General Secretary of Joint Employees Council RK Verma believes that the 8th Pay Commission can also move in the same direction. The aim of the commission can be ‘less allowances, but more transparency’. This means that allowances that are now outdated or have no special use can be removed. Also, a new allowance can be created by combining similar allowances. This can increase the importance of Basic Pay and Dearness Allowance (DA) in the salary of the employee, while small allowances can be abolished.
Which allowances may be affected?
There has been no official announcement yet, but experts predict that Travel Allowance, Special Duty Allowance, some small regional allowances and the old typing/clerical allowance may be removed. The government wants the salary structure to be simple and there should be no duplication in it.
What will happen if allowances are reduced?
The reduction in allowances will not have any negative impact on the total income of the employees. The government usually makes such a balance that the income of the employees is maintained by increasing the basic pay and DA. This not only does not affect their current income, but also has a positive impact on their pension, because pension is calculated on the basis of basic pay and DA.
Current Status of 8th Pay Commission
The central government had announced the 8th Pay Commission in January 2025, but its process is still incomplete. The ‘Terms of Reference’ (ToR) for the commission have not been decided yet. Only after the ToR is decided, the commission will be able to formally start work and its chairman and members can be appointed.
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