7th Pay Commission Update – The Modi government may soon decide to increase the dearness allowance (DA) of central employees. The DA of central employees could be increased by up to 3% before Diwali. This could mean a significant increase in their salaries, which would prove to be a significant gift.
Approximately 10 million employees and pensioners will benefit from this. This government decision is expected to be a booster dose. However, no one has yet stated the date of the DA increase. Such claims are being made in media reports. You can find the DA-related update in detail below.
How much will the DA be?
The central government may increase the dearness allowance (DA) by up to 3%, which will be a significant benefit. This will increase the DA of employees to 58%. Currently, central employees receive 55% DA, which will prove to be a significant gift.
The increased DA rates will be implemented from July 1, 2025. The previous 2% DA increase was implemented from January 1, 2025. Now, everyone is eagerly awaiting the announcement before Diwali.
How much will the salary increase?
A 3% DA increase could result in a significant increase in salary. If a central government employee earns Rs 40,000, then the 3% DA would translate into a monthly increase of Rs 1,200. This translates to an annual increase of Rs 14,400.
If an employee earns Rs 30,000, then the 3% DA would translate into an increase of Rs 900 per month. Furthermore, an annual increase of Rs 10,800 could be seen.
When will the 8th Pay Commission be implemented?
For your information, the 8th Pay Commission is expected to be implemented along with the DA increase. It is believed that the Central Government may constitute the 8th Pay Commission in October, along with the DA increase.
The government has approved the new Pay Commission, but it has not yet been formed. A committee may be formed soon. If this happens, the 8th Pay Commission could be implemented by 2027.