8th Pay Commission Update: DA is increased twice a year—once in January and again in July. Experts are estimating a 3-4 percent DA increase for July 2025.

8th Pay Commission Update: Central government employees and pensioners have been awaiting the recommendations of the Eighth Pay Commission for a long time, but it may take some more time. However, for now, there is some good news for them.

According to media reports, a major announcement regarding the Dearness Allowance (DA) increase is expected before Diwali. This increase will benefit over 12 million employees and pensioners, giving them additional funds to spend during Dussehra and Diwali. Currently, central government employees receive 55% DA.

How much will DA increase this time?

Experts believe that this could increase by 3%, taking inflation into account. DA is increased twice a year—once in January and again in July. Experts are estimating a 3-4% DA increase for July 2025.

However, salaries typically increase in the form of DA hikes, usually months after the official announcement, around February-March or September-October. The salary received with the DA hike in the salary account also includes arrears for January and July. Overall, employees receive a substantial salary during this period, which significantly helps them adjust to rising inflation.

Will the 8th Pay Commission be implemented before 2027?

According to recent reports, the Eighth Pay Commission may be implemented as early as 2026, instead of 2027. Last month, representatives of the Government Employees National Confederation (GENC) met with Union Minister Jitendra Singh regarding this matter. Jitendra Singh confirmed that active discussions are underway with state governments on this matter, and an official announcement regarding the commission and its panel is expected soon.

How much will the salary increase? 

It's obvious that the DA increase will also increase the monthly income of employees and pensioners. For example, if someone's basic salary is ₹50,000, they will receive approximately ₹3,000 more per month after the DA hike. DA calculations are based on the CPI-IW (Consumer Price Index for Industrial Workers) formula, which is released monthly by the Labor Bureau.