Will DA-HRA Continue Under 8th Pay Commission? Big Update for Govt Staff

The central government recently released the Terms of Reference (ToR) for the 8th Pay Commission, confirming its official formation. A 3-member committee, led by Justice Ranjana Desai, will operate with an 18-month deadline. The report is expected by mid-2027, after which the cabinet will discuss and approve it. The main question among employees is, ‘Will allowances like DA, HRA, and TA be stopped?’

Even if the 8th Pay Commission’s recommendations are released in 2027, they will be effective from January 1, 2026. Employees and pensioners will get the new salary later, but arrears will be calculated from January 1, 2026. So, even with a delay, arrears will accumulate. Many central government employees now fear, ‘Will DA, HRA, and TA be stopped after the 8th Pay Commission?’

Current DA is 58% (from July 1, 2025). The next hike is due Jan 1, 2027. Many fear allowance cuts, but experts say it’s unlikely DA, HRA, and TA will be stopped. Allowances will continue per 7th Pay Commission rules until the 8th is implemented. DA will be hiked every 6 months as usual.

Pay Commission Director Ramachandran Krishnamurthy said the report will take 18 months. During this period, DA will be hiked three times (every 6 months). If each hike is 3%, the current 58% DA could reach 67%. This is just an estimate; the actual hike depends on the CPI.