8th Pay Commission Allowance Changes

8th Pay Commission: Expected Changes in Key Allowances

📌 Major Allowance Reforms Anticipated

Review & Rationalization of Allowances: Obsolete and redundant allowances may be merged or eliminated.
DA/DR Merger: Likely to be included in basic pay and pension.
Special Duty & Risk Allowances: SDA and hardship pay may be revised for high-risk posts like Siachen.
Merging Lower Pay Levels: Entry-level Pay Levels (1–6) may be consolidated to improve pay and promotion structures.
Expanded Allowances: House Rent, Transport, Medical, Education, and new family support allowances may be revised.
Interim Relief: Demands ongoing for interim pay increases before final implementation.
Pension Reforms: Expected changes in pension commutation, family pension rules, and faster restoration of commuted pension.

Allowance / Benefit	Expected Change
Outdated allowances	Many eliminated or merged, as done under 7th CPC
DA/DR	Likely integrated into basic pay/pension
SDA / Risk-Hardship Allowances	Reassessment and redesign possible
Pay-Level Merges (1–6)	Consolidation to raise salary limits and improve career growth
HRA, TA, Education, Medical, Pension	Increased and modernized benefits
Interim Relief	Requested ahead of full roll-out
Pension reforms	Faster commutation, periodic revision, improved benefits

ToR Notification: Likely by April–May 2025.
Appointments: Chairman and members to be selected soon.
Commission Operation: Report submission expected by late 2026 or early 2027.
Retroactive Benefits: Arrears may be paid once finalized.