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New Delhi: Following the implementation of 7th Central Pay Commission (CPC), the DA hike made by the central government reached 58 per cent. Now, the Centre also set up the 8th Pay Commission which will submit its report in 18 months. However, one big question is whether the huge allowances like DA, HRA and TA will continue to be increased to the central government employees in the meantime or will they be stopped?
According to a ET report, experts say that till the 8th CPC is implemented, the DA will continue to be calculated on the basic salary of the 7th CPC. That is, DA will continue to increase every six months. In this sense, if the 8th CPC takes 18 months to implement, then there will be at least 3 DA hikes during this time period. If we assume a simple increase of 3% every time, the current 58% DA, the expected DA would be 61% after 6 months; 64% after 12 months and 67% after 18 months. After this, DA will be merged with basic pay when the 8th CPC is implemented.
According to the report, experts say that DA, HRA, Children Education Allowance (CEA) and Medical/Fixed Medical Allowance (FMA) will also continue to increase. There is a high probability of an increase in medical allowance, especially for pensioners.
House Rent Allowance: According to experts, the increase in HRA is almost certain, as it is directly linked to both basic pay and DA. According to the projects, it is possible to increase the HRA rates for cities of X, Y and Z categories.
Transport allowance: TA is also included in the allowances that may see an increase before the 8th CPC is implemented. However, some experts believe that such small or regional allowances can be rationalized, or even deducted, in the 8th CPC.
Children Education Allowance
According to some estimates, CEA increases as soon as DA reaches 50%. Education-related allowances, such as assistance for children with disabilities or hostel subsidies, are often linked to inflation and DA, which is why it is possible to revise them.
Medical/Fixed Medical Allowance
The possibility of an increase in FMA is highest for pensioners. Medical allowance was increased in the 7th CPC as well, so it is considered natural to revise it again in the 8th CPC.
Dress allowance, risk allowance and other perks
Projections suggest that dress allowance and risk allowance may also increase. Additionally, some performance-based or skill-based perks are likely to be increased or new elements added.
Will the annual increment continue?
According to the report, the 8th CPC could be implemented by 2027. Due to this delay, the 3.5% annual increment received under the existing 7th CPC will continue to be received as before.
Modified Career Assured Progression (MACP) is a system for central employees in which salary upgradation is available for 10, 20 and 30 years of service. Experts believe that the rules of MACP will continue as they are until the 8th CPC is implemented.
