Employees will soon get the gift of DA Hike, what is the government's plan for 8th Pay Commission

Central employees can get two big gifts together or should say that they can get good news. According to media reports, the Government of India may increase both Dearness Allowance (DA) for central employees and Dearness Relief (DR) for pensioners by 4 percent.
After the 4 percent increase, DA will increase from 42 percent to 46 percent. This can increase the salary by at least 2000 rupees. This decision will benefit 1 crore employees and retired people of the country.
If the basic pay of a central employee is Rs 18,000, then he would be getting a DA of Rs 7,560 at the rate of 42 percent. Wherein when DA will be 46 percent then DA will be Rs 8280 per month.
Accordingly, there will be an increase of Rs 720 in the monthly salary. If a person's salary is Rs 56,900, then he will get an allowance of Rs 2,276 per month and Rs 27,312 annually.
According to media reports, apart from the dearness allowance, the government can also increase the HRA (House Rent Allowance). The last HRA was increased by 25 percent in July 2021. This time an increase of 3 percent is possible in it.
The government on Tuesday, July 25, clarified in the Rajya Sabha that there is no proposal under consideration to set up an Eighth Pay Commission for central government employees. This was stated by Minister of State for Finance Pankaj Chowdhary in a written reply in the Rajya Sabha.
Dearness Allowance is paid by the government to its employees as well as pensioners to reduce the effect of inflation. It is calculated as a percentage of basic pay to prevent the effect of inflation. As per the provisions of the Income Tax Act 1961, it is mandatory to declare the tax liability relating to DA while filing ITR.
The full form of HRA is House Rent Allowance. It is a part of your salary provided by the employer towards the expenses incurred for the rented accommodation. You can claim HRA exemption only if you are living in a rented house. HRA exemption is covered under section 10(13A) read with rule 2A of the Income Tax Act, 1961.