8th pay commission latest news: Since the announcement of the dearness allowance hike, government employees and pensioners have been eagerly awaiting the recommendations of the 8th Pay Commission. Now, the Finance Ministry has provided an update on when the pay revision and arrears will be implemented.
It is worth noting that the Union Cabinet has approved a 3% increase in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners. This will be effective from July 1, 2025. This revision will result in a 3% increase in DA and DR.
When will the salary increase happen?
The central government has announced a second DA increase for 4.9 million central government employees and 6.9 million pensioners in 2025. This time, the DA has been increased by 3 percent, while previously, in March 2025, employees received a 2 percent increase in allowances. Currently, DA is 55% of the basic salary and will be increased to 58%.
Currently, more than 12 million government employees and pensioners are eager to know when their salaries will be increased. The first step towards a salary increase is the official formation of the Eighth Pay Commission. Despite government approval on January 16, 2025, the Eighth Pay Commission has not yet been formally constituted.
The Terms of Reference (ToR) are crucial for any Pay Commission to commence its work. It sets out the rules for determining salaries, allowances, retirement benefits, and other related matters. The Terms of Reference serve as the basis for the Commission’s functioning. The appointment of the Chairman and Members can only be made after the Terms of Reference are finalized. Without this, the Commission is not formally constituted and cannot begin its work.
Will the 8th Pay Commission be implemented in 2028?
The experience of previous pay commissions has caused some concern among central government employees and pensioners about the process and implementation of the 8th Pay Commission. Both the Sixth and Seventh Pay Commissions took at least two to three years from their formation to their final implementation. According to a report in the Financial Express, the 8th Pay Commission is expected to follow a similar timeframe and pattern and is unlikely to be implemented before 2028.
