8th Pay Commission: The government announced in January 2025 regarding the 8th Pay Commission. Since then, discussions about salary and pension increase between central employees and pensioners have intensified. It is expected that the DA Basic salary in the 8th Pay Commission may merge. Also, the structure of allowances means allowance.
Proposal to increase medical allowance three times
During the 34th SCOVA meeting held in Delhi on 11 March 2025, an important proposal was revealed about the fixed medical allowance of pensioners. It was suggested in the meeting that the current Rs 1,000 medical allowance should be increased to Rs 3,000. Pensioners were demanding an increase in this allowance in view of the long -term rising inflation and treatment expenses. Now it has been recommended to include this proposal in the Terms of Reference. This change is believed to be applicable from 1 January 2026.
HRA and other allowance may increase
The SCOVA meeting also clarified that apart from salary, other allowances such as house rent allowance (HRA), Travel Allowance (TA), Dearness Allowance (DA) and medical allowance should also be reviewed. According to media reports, employees living in metro cities are likely to get more HRA. At the same time, the calculation of travel allowance for posted employees in rural and semi-urban areas can be done in a new way. Along with this, the government is also considering to eliminate some older allowances so that the system can be improved further.
DA basic salary will merge?
The fitment factor in the 7th Pay Commission was kept at 2.57. The minimum wage was then fixed at Rs 18,000. Now it can increase to 27000 rupees. Basic salary in the 8th Pay Commission may merge in DA. At present, the Commission’s outline and Tor are yet to be finalized. Usually the time is 18 to 24 months from the formation of a pay commission to the implementation of its recommendations. In such a situation, it is expected to be implemented on 1 January 2026, now it seems that this date can also move forward.