In a festive boost for central government employees, the Union Government announced a 3% increase in Dearness Allowance (DA) on October 1, just ahead of Diwali. With this revision, the DA has risen from 55% to 58%, benefitting millions of employees under the 7th Pay Commission.
The announcement comes as anticipation builds around the 8th Pay Commission, which is set to bring major revisions to the pay structure of central government employees and pensioners.
8th Pay Commission: What to Expect
According to reports, Prime Minister Narendra Modi announced the formation of the 8th Pay Commission on January 16, 2025. The new commission will review and revise basic pay, allowances, and pension benefits, impacting nearly 50 lakh employees and 65 lakh pensioners.
While no official timeline has been released, past patterns suggest implementation could take place by 2027 — similar to the 7th Pay Commission, which was constituted in 2014 and implemented in 2016.
Preliminary estimates indicate that the minimum basic pay may rise from the current ₹18,000 to around ₹26,000 per month, though the final structure will depend on the Commission’s recommendations.
This move underscores the government’s ongoing commitment to improving the financial well-being and living standards of its workforce, balancing inflation adjustments with long-term pay reforms.
