If you’re a central government employee or a pensioner, there’s a lot happening behind the scenes that could directly impact your salary and monthly allowances. Since the government announced the 8th Pay Commission in January 2025, discussions have gained momentum — and now, all eyes are on what’s changing.
What’s Changing in the 8th Pay Commission?
Since the official announcement, one of the biggest talking points has been the possible merger of DA (Dearness Allowance) into basic salary. This could lead to a noticeable increase in take-home pay for millions of employees.
But that’s not all. A few other key allowances are also under review — and some of them could see a substantial hike.
Fixed Medical Allowance May Be Tripled
During the 34th SCOVA (Standing Committee of Voluntary Agencies) meeting held on 11 March 2025 in Delhi, an important proposal came up regarding pensioners’ medical support.
Here’s what was suggested:
- The current Fixed Medical Allowance of ₹1,000/month could be increased to ₹3,000/month
- This comes in response to growing concerns about rising healthcare costs and inflation
- If approved, the change might be included in the Terms of Reference (ToR) of the 8th Pay Commission
- The likely implementation could begin from 1 January 2026
This proposal has been long awaited by retired employees who often struggle with out-of-pocket health expenses.
Other Allowances May See a Revision Too
The SCOVA meeting also touched upon other key allowances that could be restructured in the upcoming pay commission:
- House Rent Allowance (HRA):
Employees posted in metro cities might get higher HRA slabs due to steep living costs. - Travel Allowance (TA):
For those serving in rural and semi-urban locations, the TA calculation method could be updated to reflect local conditions more fairly. - Medical & Miscellaneous Allowances:
In addition to the medical allowance, other older allowances might either be increased or phased out to simplify the system.
Will DA Really Be Merged Into Basic Pay?
One of the most discussed changes is the merger of DA with basic salary.
To understand the impact, let’s look at what happened during the 7th Pay Commission:
- Fitment Factor: Set at 2.57
- Minimum Pay: Fixed at ₹18,000
With the 8th Pay Commission, the fitment factor is expected to be higher, and the starting pay may increase to ₹27,000 or more if DA is added to the base.
However, there’s no final decision yet. The framework and ToR (Terms of Reference) for the commission are still being drafted.
Historically, from the time a pay commission is formed to when its recommendations are implemented, it takes 18–24 months. So while the target is 1 January 2026, delays are still possible.
8th Pay Commission Summary
| Change Expected | Details |
|---|---|
| Basic Pay Hike | From ₹18,000 to ₹27,000 (estimated) |
| DA Merger | DA may become part of basic salary |
| Medical Allowance | ₹1,000 → ₹3,000/month |
| HRA Update | Higher for metro employees |
| Travel Allowance | New calculation model for rural postings |
| Implementation Date | Tentative: 1 January 2026 |
Final Thought
For central employees and pensioners, the 8th Pay Commission could bring more than just a raise — it could reshape how salary and benefits are structured for years to come.
But patience is key. Until the commission’s final report is ready, nothing is certain. Still, these early updates offer real hope — especially for those relying on fixed allowances to manage day-to-day life.
If you’re a pensioner or employee, now’s a good time to stay updated, track government notifications, and understand how these changes could impact your income from 2026 onward.
