New Delhi: The festive season is underway in India, with more major festivals looming ahead. First, Dussehra, then Dhanteras, Diwali, and Chhath Puja will be celebrated. Before these festivals, the Modi government is considering giving good news to central government employees. A DA increase is expected for central government employees and pensioners.
Speculations are rife that this year, the DA could be increased by up to 3%. This increase is sure to be a boon for central government employees, impacting their salaries. In the first half of 2025, the DA was increased by only 2%, which came as a shock to employees.
How much will the DA be?
The central government is considering a 3% increase in DA. This increase could happen before Dhanteras, i.e., by October 15th. After this, the DA will increase to 58%. Currently, central government employees receive a 55% DA. The DA increase rates will be effective from July 1, 2025. The government’s twice-yearly DA increases are effective from January 1 and July 1. Salaries increase substantially.
How much will salaries increase?
If a central government employee’s salary is ₹30,000, adding 3% DA could increase it to ₹900 per month. This means their salary will increase by ₹10,800 annually. This amount will provide significant relief in times of inflation. This could significantly benefit employees. However, no official word has yet been given on the amount of the DA increase.
When will the 8th Pay Commission be implemented?
The Modi government may end the wait for employees regarding the 8th Pay Commission. The government may form a committee for the new Pay Commission during Diwali. This will pave the way for the implementation of the 8th Pay Commission. If the committee is formed now, it could be implemented as early as the first quarter of 2027. The salary increase is expected to be based on the fitment factor. The 7th Pay Commission also based salary increases on the fitment factor. This is likely to remain the case now.