The Modi government has already fulfilled its promise to give a Diwali gift to Indian citizens. The centre has implemented new GST reforms from September 22 which made around 370 items cheaper and gave a big relief to middle-class people. Now, the government is preparing to give its employees big gifts before Diwali. The central government employees may get to see the constitution of the 8th Pay Commission, an increase in Dearness Allowance (DA Hike), and Diwali Bonus. Let’s know more about this:
1. 8th Pay Commission
The government may soon constitute the 8th Pay Commission. This is expected to be implemented on January 1, 2026. By October 2025, the government can issue the Terms of Reference (ToR) and officially announce the 8th Pay Commission.
The government-announced 8th Pay Commission will evaluate the present pay structure for central government employees. Before the 8th Pay Commission, the 7th Pay Commission replaced the grade pay system with levels and implemented a structured pay matrix. Employee compensation in the central government has undergone significant changes over time.
Add Zee Business as a Preferred Source
Also Read- GST 2.0 Bonanza Begins: From breakfast to bed, how a day in the life of middle-class worker changes
2. Dearness allowance
Employees are getting 55 per cent DA from January 1, 2025. Now the second installment for July-December 2025 is to be decided.
According to the All India Consumer Price Index (AICPI) data, the DA for July can reach 58 per cent. Before Diwali, the government may announce a 3 per cent DA hike, which means employees’ DA will increase from 55 per cent to 58 per cent.
3. Diwali bonus
Every year, the government gives Productivity Linked Bonus (PLB) or ad-hoc bonus to non-gazetted employees. This year’s bonus is expected to be announced before Diwali.
FAQs
When will the 8th Pay Commission be announced?
There has been no official announcement yet.
On what basis is Dearness Allowance (DA) decided?
DA is determined based on AICPI (All India Consumer Price Index).
Is the bonus taxable?
Yes, the bonus is taxed as per the income tax slab.
Also Read: Customers celebrate as GST 2.0 reforms signal record sales throughout India