Central Government employees are eagerly waiting for the official announcement regarding the 8th Pay Commission. Everyone is expecting a significant salary hike under the new pay commission. Also, pensioners are in hope to get a better amount of pension. Now, a significant news has arrived amid the festive season.
Hike in DA
Meanwhile, employees have received some good news. Dearness Allowance (DA) has been increased by 3% starting in October 2025. The DA rate has now risen from 55% to 58%. This increase is effective from July 1, 2025. As a result, employees will also receive three months’ arrears for July, August, and September. This additional amount will be credited to their accounts along with their October salary. The 8th Pay Commission is set to bring major changes to the pay structure of central government employees. Under this plan, the basic salary, allowances, and pension structure will be reviewed.
Its primary objective is to provide financial relief to employees amid rising expenses due to inflation. Its implementation will benefit approximately 5 million employees and 6.5 million pensioners. This commission will reform the pay structure. The minimum basic salary could be increased through the fitment factor. New allowances could also be included. This would increase the attractiveness of government jobs. After its implementation, employees could also receive arrears.
Central Government announcement
The central government announced a 3% increase in DA effective October 1, 2025. The DA rate has now increased from 55% to 58%. This increase is effective July 1, 2025. As a result, employees will receive three months’ arrears for July, August, and September. This amount will be credited to their accounts with their October salary.
However, reports regarding 18 months of arrears are false. The Finance Ministry has clarified that DA/DR payments for the 18 months from January 2020 to June 2021 will not be paid during the COVID-19 pandemic. No official announcement has been made. The decision to withhold payments was made due to economic pressure.
Salary increases are anticipated under the 8th Pay Commission. The fitment factor is expected to be 1.96. Consequently, the minimum basic salary could increase from ₹18,000 to ₹35,280. HRA will be included in this additional amount, significantly increasing employees’ total in-hand salary.
