DA Hike 8th Pay Commission : This Diwali is going to be very special for central government employees and pensioners. The reason is that the central government may make changes to the 8th Pay Commission, along with an increase in dearness allowance (DA). Both these decisions will be applicable to central government employees and pensioners.
A 3% increase in dearness allowance (DA) is expected next month. If this happens, the current 55% DA will increase to 58%. This news is especially a relief for the millions of employees and pensioners who are waiting for their salaries and pensions every month.
According to media reports, a major announcement regarding the Dearness Allowance (DA) increase may be made before Diwali. This increase will benefit more than 12 million employees and pensioners. They will have additional money to spend during Dussehra and Diwali. Currently, central government employees receive 55% DA. It should be noted that the central government revises DA twice every year – first from January to June and second from July to December.
The last increase was 2%.
In March 2025, the government increased the DA by 2% for the January-June period, increasing it from 53% to 55%. Now, there is talk of a 3% increase for the July-December period, 2025. If implemented, approximately 10 million employees and pensioners will benefit.
It should be noted that DA directly impacts salary and pension, as it is determined based on the basic salary. If a pensioner’s basic pension is Rs 9,000, then at 55% DA, they receive Rs 4,950 as DA. This results in a total pension of Rs 13,950. If the DA is increased to 58%, the DA will increase to Rs 5,220, making the total pension Rs 14,220. This means a benefit of Rs 270.
Eighth Pay Commission
On January 16, 2025, the government made it clear that the Eighth Pay Commission would be formed. Sources indicate that its Terms of Reference (ToR) could be finalized and the Commission itself constituted before Diwali. The Commission is expected to have six members. The report is expected to be submitted within 15–18 months, although this time the target could be set at eight months so that the new recommendations can be implemented by January 1, 2026.
