The next few days can be very important for lakhs of central government employees and pensioners. According to reports, the Modi government may announce an increase in dearness allowance (DA) by August 15, 2025. This increase will be considered effective from July 1, 2025. Along with this, the process of formation of the 8th Pay Commission is also expected to pick up pace. This announcement will affect the financial condition of lakhs of families and help them fight inflation.
Big gift from the government before 15 August
About 50 lakh central government employees and 62 lakh pensioners in India are eagerly waiting for the 8th Pay Commission. The term of the 7th Pay Commission is ending on 31 December 2025, so all eyes are on the next commission.
Speed up the process of the 8th Pay Commission
The government had announced the 8th Pay Commission in January 2025, but the appointment of the chairman of the commission has not been made yet. Due to this, the process was getting delayed. But now it is believed that rapid steps will be taken in this direction. Employees expect a better salary structure from the new pay commission, so that their standard of living can be further improved.
Government salary is not just basic; many allowances too
The salary in a government job is not limited to just the basic salary. It includes many allowances, such as dearness allowance (DA), house rent allowance (HRA), and travel allowance (TA). Nowadays, these allowances have become about 50% of the total salary.
DA is reviewed every 6 months
The government reviews the dearness allowance (DA) every 6 months. This review is based on inflation data (CPI). The July 2025 review has been done, but the government has not made any official announcement yet. It is expected that a big announcement may be made in this regard before August 15, 2025. It is also believed that dearness allowance may increase by 3 to 4 percent.
Salary will be decided by the fitment factor
The actual salary increase is done through the fitment factor. In the 7th Pay Commission, this factor was 2.57. According to reports, in the 8th Pay Commission, it can be between 1.83 and 2.46. For example, if the basic salary of an employee is ₹ 18,000 and the fitment factor of 2.46 is applied, then his salary can increase to ₹ 44,280.
All central employees and pensioners are eagerly waiting for the next announcement of the government. If the Dearness Allowance increases and the process of the 8th Pay Commission starts, it will be a big relief and happy news for lakhs of people.