8th Pay Commission: How will dearness allowance and other benefits work? Know here who will get the benefit and who will not?

8th Pay Commission Update: From time to time, the Central Government constitutes a Pay Commission to revise the salaries, allowances and pensions of its employees and pensioners. After the 7th Pay Commission, now the discussion regarding the 8th Pay Commission is intense. Although the formal announcement of its formation and implementation has not been made yet, there is a question in the minds of the employees that how will the Dearness Allowance (DA) and other benefits work in the 8th Pay Commission and who will get the benefit from it.

How will Dearness Allowance (DA) work?

Dearness allowance is given to protect the employees from the effects of rising inflation. It is decided on the basis of All India Consumer Price Index (AICPI) and is usually increased twice a year (January and July). After the implementation of the 8th Pay Commission, the existing DA can be merged into the basic salary, as has been happening in the earlier pay commissions. After this, the calculation of DA will start from zero on the new basic pay and will proceed on the basis of inflation data.

What changes are possible in other allowances?

In the 8th Pay Commission, not only the salary but also many allowances are reviewed. This includes House Rent Allowance (HRA), Transport Allowance, Travel Allowances, Medical Facilities and other special allowances. The Commission can decide which allowances will continue, which will be merged and which can be abolished. Generally, efforts are made to make inflation related allowances simple and transparent.

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Who will get the benefit of 8th Pay Commission?

All regular employees and central pensioners of the Central Government will get the direct benefit of the 8th Pay Commission. Apart from this, many state governments also adopt the pay commission of the Centre, which can also indirectly benefit the state employees and pensioners. Employees of autonomous institutions, if their service rules are in accordance with the Centre’s, can also get the benefit of revised pay.

Who will not get the benefit?

Contract employees, outsourced staff and private sector employees do not come under the purview of the 8th Pay Commission. Similarly, those institutions which are completely private or whose salary structure is not linked to the central government, will not get this benefit.

With the implementation of the 8th Pay Commission, major changes are possible in the salary, DA and allowances of employees. Although the final decision will depend on the recommendations of the government and the commission, its objective will be to increase the purchasing power of the employees and reduce the impact of inflation.

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