Put simply, would-be huge hiked benefits for millions of central government employees and pensioners must see a 4% hike in Dearness Allowance (DA) during the upcoming revision, while matters relating to the 8th Pay Commission are gaining pace. Such a high-profi le duo gives strong impetus to the possibility of hike in government salary and perks all throughout India.
Dearness Allowance Expected to Get Hiked in the 2nd Half of 2025
Inflationary opportunity has been given off by an upward movement in this index over the last two months. This index, as noted earlier, is what serves as the basis for DA computation. An upward pressure on inflation has made indexed DA have a 4% increment, going from 50% currently to 54%, according to many experts.
The announcement shall be released by September 2025, with effect applied 1 July 2025 (retrospective). DA increase by 4% works out to nearly Rs. 720 to 2,000 monthly DA, depending upon the basic pay of each employee.
Effect on Pensioners
Increased DR Dearness Relief shall be paid to the pensioners after the increase. Many pensioners depend on this to meet the rising cost of living, hence this shall be relief.
8th Pay Commission: Early Sign of Policy Discussion
Adding to the good news, it is learnt that the 8th Pay Commission is under early discussion within the government policy circles. Nothing has been officially released yet, but the employee unions have been demanding constitution of a new Commission before 2026.
Major demands. includes:
- Revised salary structure in terms of inflation
- Improved fitment factor (expected to be raised from 2.57 to 3.68)
- Better retirement benefits and allowances