July’s data will, however, influence the DA rate that comes into effect in January 2026. This future rate will also play a role in calculating the minimum pay under the 8th Pay Commission, once the commission submits its recommendations.
At present, the government is yet to announce the Terms of Reference or the chairperson for the 8th Pay Commission. Once set up, the commission is expected to take 1–1.5 years to submit its report. After implementation, the DA rate will be reset to zero under the new pay structure, marking a fresh start for allowances.