New Delhi: Central government employees and pensioners, who have long been waiting for updates on the 8th Pay Commission, might receive some financial cheer before Diwali. According to media reports, the government is likely to announce an increase in Dearness Allowance (DA) ahead of the festival season. This move could benefit more than 1.2 crore employees and pensioners, just in time for extra festive expenses during Dussehra and Diwali.
How Much Could the DA Increase?
At present, central government employees are getting 55 percent DA on their basic salary. Experts tracking inflation trends believe that the government may raise the DA by 3 percent, considering the current price rise. DA is reviewed and revised twice every year — once in January and then again in July. While the final approval takes some time, the increase is usually reflected in salaries a few months later.
When Will the Money Be Credited?
Although the official announcement for the July DA hike hasn’t been made yet, it’s expected to come around September or October — just before Diwali. Employees will not only receive the increased DA but also the arrears for the months of January and July. This means their salary account will receive a large credit amount, providing extra cash to manage festive season expenses. It’s common for such arrears to be paid in bulk, giving employees a big one-time boost in income.
What Will Be the Salary Impact?
To understand the impact, consider this simple example: If an employee’s basic salary is Rs 50,000, a 3 percent increase in DA would mean an extra Rs 1,500 each month. Over several months, along with arrears, this could add up to a lump sum of Rs 10,000 or more, depending on the employee’s pay structure. The DA is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), a number released by the Labour Bureau each month.
Any Update on the 8th Pay Commission?
Meanwhile, there's growing curiosity around the 8th Pay Commission. Although it was earlier expected to roll out in 2027, some reports now suggest it could be implemented by early 2026. Last month, leaders from the Government Employees National Confederation (GENC) met with Union Minister Jitendra Singh, who confirmed that discussions are ongoing with various state governments. This has raised hopes that an official panel could be formed soon, bringing further clarity on salary revisions in the near future.
