Increase in allowances!
Big news has come for central employees. According to the information, there is a strong possibility of announcement of dearness allowance in the month of September. By the way, a big update has also come out regarding the 8th Pay Commission. The 8th Pay Commission has been in the works for almost eight months since the Government of India approved the ‘Terms of Reference’ (ToR) in October 2025.
The Commission still has 10 months left. The commission is expected to recommend changes in the salaries, pensions and allowances of about 55 lakh serving employees of the central government and an estimated 69 lakh pensioners. Let us also tell you what kind of update has come out regarding dearness allowance.
DA possibility in September
The Central Government declares Dearness Allowance (DA) twice in a calendar year. According to the official announcement dated April 18, 2026, DA and dearness relief (DR, for pensioners) were increased by 2 percent for January 2026, taking the total rate to 60 percent.
When asked about the normal timing of the government announcement of the second installment of dearness allowance, All India NPS Employees Federation President Manjit Singh Patel said that dearness allowance is usually announced in September, although in some years the announcement may be delayed till October.
Singh explains that this is because the government needs at least two months’ data to decide dearness allowance. Data for July alone cannot be used to decide DA applicable from July to December. Therefore, the government uses an average chart based on two to three months of data.
Dearness Allowance (DA) for central government employees is calculated on the basis of ‘All India Consumer Price Index for Industrial Workers’ (AICPI-IW) data released by the Labor Bureau. The previous AICPI-IW for April 2026 rose 0.8 points to 149.9. The DA rate for July 2026 for central government employees will depend on the AICPI-IW data of May and June 2026 released by the bureau.
Deadline for submitting memorandum to 8th CPC expired
The last date for submission of memorandum to the 8th CPC was June 15, 2026. The Commission had launched the facility to submit memoranda on its official website to recommend pay, allowances and pension structures for various categories of government officials, employees and pensioners.
Unions and organizations of central government employees, while presenting their views before the 8th CPC (Central Pay Commission), have mainly emphasized on improving salary, pension and retirement benefits. Their main demands include increasing the fitment factor and a substantial increase in at least the basic pay.
Employee organizations have also demanded re-implementation of the Old Pension Scheme (OPS) or review of the NPS/UPS framework. Apart from this, they want improvements in HRA, risk pay, bonus, leave benefits and other job related facilities.
Singh said that with the completion of the process of submission of the memorandum on June 15, the 8th Central Pay Commission has completed an important phase of negotiations with stakeholders. It is expected that the Commission will thoroughly examine the suggestions received from employees, pensioners, judicial officers and other stakeholders and complete its remaining discussions expeditiously.
Upcoming visits of 8th CPC to states
Meanwhile, the 8th CPC tour of states and union territories continues. The Commission has announced to visit Lucknow in Uttar Pradesh, Bhubaneswar in Odisha and Kolkata in West Bengal. The meeting has been scheduled for 22-23 June in Uttar Pradesh, 6-7 July in Odisha and 9-10 July in Kolkata. The Commission has recently completed talks with stakeholders in Delhi, Ladakh, Jammu and Kashmir, Hyderabad, Telangana and Maharashtra. The Commission held its first talks with employee organizations based in Uttarakhand on April 26, 2026.
