The coming week can be important for lakhs of central government employees and pensioners. According to media reports, by August 15, 2025, the central government can announce an increase in dearness allowance (DA). 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.
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 appointment of the chairman of the commission has not been made yet. Due to this, there is a possibility of delay in its formation and implementation.
An increase in DA will increase the salary.
Government salary is not based only on basic salary. Many other benefits like Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA) are also included. The share of allowances has increased in the last few years, and now their share of the total salary has reached 50 percent. In such a situation, the 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.
There was a great increase in the 6th Pay Commission
The role of the fitment factor is important in deciding the salary increase. The Seventh Pay Commission had fixed it at 2.57. New reports estimate that under the Eighth Pay Commission, this figure can 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 ₹ 18,000 can go up to ₹ 44,280 directly.
Comparing the previous pay commissions, the Seventh Pay Commission had recommended a basic pay hike of only 14.3%, which has been the lowest in the last several decades. At the same time, the Sixth Pay Commission had given a huge hike of 54%. However, due to amendments in allowances from time to time, employees got a total salary hike of up to 23% under the Seventh Pay Commission.
In such a situation, all eyes are 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.
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