8th Pay Commission Update: Major DA Demands That Could Change Salaries, Pensions

8th Pay Commission Update: Meetings and discussions are underway with stakeholders, unions, pensioners, and other participants. (File Photo)

Central government employees and pensioners have renewed their long-standing demands concerning dearness allowance (DA) as the 8th Pay Commission gathers feedback before preparing its recommendations. The proposals include revising DA every three months, merging it with basic pay once the allowance crosses 25 per cent, and making DA tax-free. The demands, which featured in the 6th Pay Commission’s 2008 report, have resurfaced in representations submitted to the latest pay panel.

Employee and pensioner organisations believe these changes could help beneficiaries manage inflation and protect their purchasing power.

However, none of the proposals has been approved. Their implementation will depend on the commission’s recommendations and the central government’s final decision.

The 8th Pay Commission was constituted on 3 November 2025 as a temporary, three-member panel headed by Justice Ranjana Prakash Desai. It has 18 months from its formation to submit its final report to the central government.

During consultations across several states and union territories, including Delhi, West Bengal, Ladakh and Uttar Pradesh, employee associations have highlighted their concerns over the existing DA framework.

The Bharat Pensioners Samaj (BPS) has sought quarterly revisions…

Original source: https://www.timesnownews.com/business-economy