8th Pay Commission: In the 8th Pay Commission, the government can change the 10-year-old rule of calculation of DA, under which the Dearness Allowance will become ‘zero’ as soon as the base year changes. However, this will not harm the employees because the existing DA will be merged into the basic salary, which will lead to a big increase in the total salary.
8th Pay Commission: The heartbeats of millions of central employees of the country are fast. Everyone’s eyes are fixed on one question – when will the 8th Pay Commission come and how big an increase will it bring in the salary? But along with the happiness of salary increase, a big confusion is also floating. There is a buzz that this time the government is going to change the whole game of calculation of Dearness Allowance.
If sources are to be believed, the government can change a 10-year-old rule and set the DA meter to ‘zero’. It may sound a little different, but in reality it can open the door to a big good news for you.
What is the government’s ‘masterplan’? Base year will change
Dearness Allowance (DA) is calculated on the data of Consumer Price Index for Industrial Workers (AICPI-IW). This index has a ‘base year’, on the basis of which inflation is compared.
Current rules
Currently the base year for calculating DA is 2016. It was set when the 7th Pay Commission was implemented.
Proposed changes
Now when the 8th Pay Commission is to be implemented from January 1, 2026, the government can also change the base year for calculating DA to 2026.
Understand it in simple language
Changing the base year is like resetting the score of a game. When the base year is new, the calculation of dearness allowance also starts afresh, i.e. from ‘zero’.
Why is the base year being changed?
In the last decade, the way people spend, their needs and the nature of inflation have completely changed. The things we spend on today are very different from 2016. Therefore, it becomes necessary to update the base year to correctly assess inflation and give its real benefit to the employees.
7th vs 8th Pay Commission: What will change in DA calculation?
Let us understand with a table what will be the difference between the existing system and the new possible system.
| Parameters | 7th Pay Commission(Existing System) | 8th Pay Commission(Probable System) |
| Base year of DA | 2016 | 2026 (Expected) |
| What happened to the old DA? | 125% DA merged into basic salary. | 60-61% (estimated) DA will be merged into the new basic salary. |
| Beginning of DA | Starting from 0%. | Will start from 0%. |
| Basis of calculation | Based on 2016 prices. | Based on 2026 prices. |
| Final result | Basic salary increased, total salary increased. | The new basic salary will increase even more, there will be a big jump in the total salary. |
Will your existing DA become ‘zero’?
Yes, technically this is what will happen. But don’t worry, this money will not go anywhere.
How will this work?
1. First step – Merger
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By January 1, 2026, your dearness allowance will have reached about 60-61%. As soon as the 8th Pay Commission is implemented, this entire DA will be added to your existing basic salary. This will form your ‘new basic salary’, which will be much higher than before
2. Step 2 – Reset
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As soon as the old DA is added to your basic salary, the DA counter will be reset to 0%. After this, whatever increase in dearness allowance will be made, it will be calculated on this new and increased basic salary.
Understand by example
The same thing happened in the 7th Pay Commission. When it was implemented in 2016, the dearness allowance of 125% was merged into the basic pay and DA was made zero.
What will be the effect on your salary? (The Real Impact)
This change is beneficial for you. Why? Because when your future DA (eg 2%, 3%, 4%) is calculated on your new and higher basic salary, the amount you will receive will also be higher. This will increase your total salary even faster over time.
When will the 8th Pay Commission be implemented?
Formation of panel: The government may soon constitute the panel of the 8th Pay Commission.
Report: The panel takes 15 to 18 months to give its recommendations.
Implementation: Whenever the recommendations come, it is expected to be implemented from 1 January 2026. That is, you will also get the benefit of arrears.
What is the conclusion of the entire news?
DA being reduced to ‘zero’ is not a cut but a ‘technical reset’. This is an established process that happens every 10 years with the Pay Commission. This ensures that your salary keeps pace with the current inflation and you get maximum benefit of the dearness allowance you get in the future. Therefore, there is no need to be afraid of this change, but rather be prepared for a big jump in your salary.
Frequently Asked Questions (FAQs)
Q1. Will my salary decrease if I change the base year?
A: No, on the contrary, your new basic salary will increase and your total salary will also increase.
Q2. Why is DA merged into Basic?
A: So that the salary structure can be simplified and future calculations can be done on a new basis.
Q3. When will the 8th Pay Commission be implemented?
A: It is likely to be implemented from January 1, 2026.
Q4. What can be the new fitment factor?
A: There is no official information on this yet, it will depend on the recommendations of the panel.
(Disclaimer: This article is based on reports and expert opinions. The final decision will be taken by the government only after the official report of the 8th Pay Commission is released.)
