8th Pay Commission: Will the dearness allowance of central employees be zero (0) from January 1, 2026, or will the calculation increase by 60%?

8th Pay Commission: Central employees, pay attention! The very mention of the 8th Pay Commission makes your heart race, and it should. After all, this is the biggest update concerning your future, your salary, and your pocket. But have you ever wondered what will happen to your dearness allowance (DA) when the 8th Pay Commission is implemented from January 1, 2026? This is the question that's troubling every government employee's mind today: will your DA suddenly become zero from January 1, 2026, or will its calculation continue to exceed 60%? This question seems straightforward, but its answer is equally complex. But we bring you every fact, every detail from sources, and the clarity you're looking for. Let's unravel this 'DA mystery' and understand how it will impact your salary over the next few years.

The date is confirmed, but the questions remain!

January 1, 2026. This is the date when the 8th Pay Commission is proposed to be implemented for millions of central government employees across the country. However, with this date approaching, a major question has arisen in the minds of employees: "What will happen to our dearness allowance (DA)?" Will it increase beyond 60% or will it suddenly fall to zero, as happened during previous pay commissions? This question is legitimate, as dearness allowance is a crucial component of employees' salaries that helps combat inflation.

What is the current situation?
As of today, the dearness allowance for central government employees is at 58%, effective July 1, 2025. However, based on current trends, it is expected to increase by at least 2% by January 2026. This means that dearness allowance could reach 60% by January 1, 2026. So the question is, will this 60% DA become zero when the 8th Pay Commission is implemented?

What does the rule say?
Regarding the history of previous pay commissions, it has been a pattern that whenever a new pay commission is implemented, dearness allowance is reduced to zero. This means that all previous DA calculations are merged into the basic salary, and DA calculations begin anew. Employees are assuming that when the 8th Pay Commission is implemented on January 1, 2026, their 60% DA will become zero. However, this time there's a twist in the story.

A twist in the recommendations!
According to sources, even though the proposed implementation of the 8th Pay Commission is on January 1, 2026, this does not mean that DA will become zero on that day. In fact, it will take a long time to determine how the 8th Pay Commission will work, what its recommendations will be, and what the fitment factor will be. Sources indicate that the 8th Pay Commission's recommendations are expected to be released by May or June 2027, and their implementation will take even longer. Until these recommendations are released and approved by the government, DA calculations will continue.

70% DA Expected by 2027
According to sources, since the 8th Pay Commission's recommendations are expected to be released by mid-2027, the current dearness allowance calculation will continue. This means that even after reaching 60%, it will continue to increase every six months. Given current trends, dearness allowance is likely to reach 70% by May-June 2027. Yes, 70%.

Actual Time to 'Zero'
It's important to understand an important distinction here. While the Pay Commission's recommendations may be implemented from January 1, 2026, they take time to be approved and finalized. Until the recommendations are fully approved and implemented with the new pay matrix, the old DA calculation will continue. Therefore, if the recommendations are received by May-June 2027, the DA will be zeroed at that time (i.e., in 2027), not on January 1, 2026. However, the DA will be zeroed based on 60 percent, and the additional amount paid to employees instead of this will be considered in the final calculation.

So what should employees do?
Central employees will need to carefully understand this entire development. Even though the 8th Pay Commission is being implemented from January 1, 2026, the DA zeroing process will only take a few months, or perhaps a year. Until then, DA will continue to accrue to your salary. This is a situation where you'll need to keep a close eye on your salary slip and wait for the government's official announcement.

What are your expectations from the 8th Pay Commission?
This was about DA, but there are many other expectations from the 8th Pay Commission. What will the fitment factor be? What will the new pay matrix look like? Will there be changes to the rules for House Rent Allowance (HRA) and Travel Allowance (TA)? We'll know the answers to all these questions by 2027, when the Commission submits its final recommendations to the government. Until then, it's important to understand that DA calculation is a continuous process, and it only becomes zero when the recommendations of the new Pay Commission are fully implemented.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.