DA Hike Update– Good news for central government employees. The coming week can be important for lakhs of central government employees and pensioners. According to media reports, the central government can announce an increase in dearness allowance (DA) by August 15, 2025. Along with this, after the last installment given under the Seventh Pay Commission, the process of the Eighth Pay Commission is also being talked about speeding up.
In fact, the term of the Seventh Pay Commission is going to end on 31 December 2025, and with this, the expectations of lakhs of central government employees and pensioners regarding the Eighth Pay Commission have increased. A total of more than 50 lakh employees and 62 lakh pensioners are expecting a better salary structure.
Although the central government had announced the Eighth Pay Commission in January 2024, the chairman of the commission has not been appointed yet. Due to this, there is a possibility of delay in its formation and implementation.
Salary will increase due to increase in DA
Government salary is not based only on basic salary. Many other benefits like Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA) are also included. The share of allowances has increased in the last few years and now their share in the total salary has reached 50 percent. In such a situation, increase in DA directly affects the salary.
Dearness Allowance is reviewed every six months, which is based on the Consumer Price Index i.e. CPI. So far there has been no official statement from the government on the DA review of July 2025, but according to reports, a big announcement can be made on this before Independence Day.
The fitment factor plays an important role in deciding salary hike. The Seventh Pay Commission had fixed it at 2.57. New reports estimate that under the Eighth Pay Commission, this figure could be between 1.83 and 2.46. If the 2.46 fitment factor is approved, then the salary of an employee with a basic pay of Rs 18,000 can go up to Rs 44,280 directly.
Comparing the previous pay commissions, the Seventh Pay Commission had recommended a basic pay hike of just 14.3%, which is the lowest in the last several decades. On the other hand, the Sixth Pay Commission had given a whopping 54% hike. However, due to amendments in allowances from time to time, employees got a total pay hike of up to 23% under the Seventh Pay Commission.
In such a situation, all eyes are now on the central government. If the increase in DA is announced by August 15 and the process of the Eighth Pay Commission also moves forward, then it will be a big relief for lakhs of employees and pensioners.