Menu

8th Pay Commission: Will Transport Allowance Drop if DA Hits Zero?

8th Pay Commission: Will Transport Allowance Drop if DA Hits Zero?

Allowances & DA News

The ‘Zero DA’ Trap: Why Transport Allowance Slabs Must Jump 2.5x to Prevent a Salary Drop

New Delhi | January 3, 2026: While everyone is celebrating the Basic Pay hike, a technical anomaly in the Transport Allowance (TPTA) rules could temporarily dent your take-home salary unless the 8th Pay Commission acts fast.

NEW DELHI: The 8th Pay Commission has a tricky mathematical problem to solve, and it sits right in your monthly payslip under the heading “TPTA” (Transport Allowance).

Unlike HRA, which is a simple percentage of Basic Pay, Transport Allowance is calculated as a Fixed Amount + DA Percentage. Currently, employees enjoy TPTA linked to a high Dearness Allowance (60%+). But on the day the 8th CPC is implemented, DA will reset to Zero.

The Risk: If the “Fixed Amount” slab isn’t raised significantly, the total allowance could technically drop overnight. Here is the math that the Unions are presenting to the Commission.

⚠️ The ‘TPTA’ Drop Scenario

Current Scenario (Level 1, X City):
Slab (₹1,350) + DA (60%) = ₹2,160

8th CPC Scenario (If Slabs Don’t Change):
Slab (₹1,350) + DA (0%) = ₹1,350 (LOSS of ₹810!)

The Solution: A 2.86x Multiplier for Allowances

To prevent this loss, the 8th Pay Commission cannot just revise Basic Pay; it must simultaneously apply the Fitment Factor (approx 2.86) to the Transport Allowance slabs as well.

Sources in the JCM Staff Side confirm this is a “Priority 1” item in their demand charter. They are demanding that the base slabs be tripled to ensure that even with Zero DA, the cash-in-hand remains higher than 7th CPC levels.

Pay Level Current Base (7th CPC) Required Base (8th CPC)
Level 1 & 2 ₹1,350 ₹3,861+
Level 3 to 8 ₹3,600 ₹10,296+
Level 9+ ₹7,200 ₹20,592+

What About CEA (Children Education Allowance)?

Unlike Transport Allowance, the Children Education Allowance (CEA) is safe. Under current DoPT orders, CEA automatically rises by 25% every time DA crosses 50%.

Currently standing at ₹2,812.50 per month, experts predict the 8th Pay Commission will round this figure off to a flat ₹4,000 or ₹5,000 per month per child to account for the skyrocketing inflation in private school fees since 2016.

Home Join Group