8th Pay Commission: Govt Announces 3% DA Hike, Salary Structure May Be Implemented by 2027

The month of October brought celebration and joy for government employees, as the central government announced a significant 3 percent increase in dearness allowance (DA), giving them a major Diwali gift. Under the Seventh Pay Commission, the DA has now increased from 55 percent to 58 percent.

While this recent salary increase has boosted employees’ take-home pay, employees’ attention has now shifted to another important question: when will the Eighth Pay Commission be implemented, and how long will they have to wait for a comprehensive review of salaries and benefits.

Tentative Timeline for the Implementation of the 8th Pay Commission

Prime Minister Narendra Modi announced the formation of the Eighth Pay Commission on January 16, 2025. However, the government has not yet released an official schedule for when the recommendations will be finalized or implemented.

According to media reports, the new pay structure may take two to three years to be implemented. This timeline will be in line with the process adopted by the Seventh Pay Commission. The Seventh Pay Commission was established in 2014, submitted its report in 2015, and came into effect in 2016.

If this pattern continues, government employees can expect the 8th Pay Commission’s pay revisions to be implemented by 2027. Until then, salary increases will provide partial relief against inflation through adjustments to the dearness allowance.

Expected Pay Increases Under the 8th Pay Commission

Although official figures have not yet been released, initial estimates indicate a significant increase in the basic pay of government employees. According to reports, the minimum basic pay (Minimum Basic Pay) could increase from ₹18,000 to ₹26,000 after the implementation of the 8th Pay Commission recommendations.

This proposed increase aims to mitigate inflationary pressures and improve the living standards of millions of government employees and pensioners. The move is expected to have a positive impact on consumer spending and overall economic sentiment, leading to a market rally.