DA hike: Centre says no to setting up 8th Pay Commission, know update on salary hike

Just as the central government employees across the country anxiously await important updates on the 7^th Pay Commission and Dearness Allowance (DA) hike news, the Centre has also made a significant announcement on the future of pay commissions in India.

Minister of State for Finance Pankaj Chaudhary announced in the Lok Sabha on Monday that the Centre essentially has no plans to introduce the 8^th Pay Commission for government employees, which can have an impact on the DA hike on salaries.

During the Lok Sabha session, Pankaj Chaudhary said, “No such proposal is under consideration with the government for constitution of 8th Central Pay Commission for the central government employees.”

As per PTI reports, the minister of state said this in a written reply to a question if the government proposes to ensure a timely constitution of the Pay Commission for central government employees so that it could be implemented on January 1, 2026.

To compensate central government employees for erosion in the real value of their salaries on account of inflation, dearness allowances (DA) are paid to them and the rate of DA is revised periodically every six months on the basis of the rate of inflation as per the All India Consumer Price index for Industrial Workers released by Labour Bureau under the Ministry of Labour & Employment, he further added.

As many as seven pay commissions have been set up by the central government since 1947, with the 7^th Pay Commission being introduced in February 2014. The recommendations of the panel were effective from January 1, 2016. 

Meanwhile, the updates regarding the DA hike under the 7^th pay commission have not been released yet, but the Centre is expected to make the announcement on the salary hike of government employees soon.

(With PTI inputs)

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