8th Pay Commission : Central government employees are expected to receive significant relief under the 8th Pay Commission. A substantial increase in the minimum wage is expected, along with an increase in the fitment factor. This could significantly improve employees’ in-hand salaries. Discussions are also swirling regarding the payment of arrears, although no official announcement has been made yet.
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.
8th Pay Commission: Important Facts
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.
The truth about DA hike and arrears
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.
- Employees have got a 3% increase in DA in October 2025.
- Due to this, arrears for three months of July, August and September will be given.
- The news of 18 months’ arrears is wrong.
- DA withheld during Covid will not be paid.
- Arrears can be received after the implementation of the 8th Pay Commission.
- The wait for the official announcement continues.
The central government has not yet officially announced the formation of the 8th Pay Commission. However, Prime Minister Narendra Modi announced it on January 16, 2025. The official notification is now awaited. Following this, the commission’s members will be appointed. The commission’s report is expected by the end of 2026 or early 2027.
The government will then consider and implement it. If this process is completed on time, the new pay structure could be implemented by July 2027. Employees could also receive arrears from January 2026 to July 2027.