The week coming for millions of employees and pensioners of the central government can be important. According to media reports, by 15 August 2025, the central government can announce an increase in dearness allowance (DA). Along with this, after the final installment given under the Seventh Pay Commission, the process of Eighth Pay Commission is also being talked about intensifying.
In fact, the duration of the Seventh Pay Commission is going to be completed on 31 December 2025, and with this, the expectations of the eighth pay commission among millions of employees and pensioners of the Central Government have intensified. A total of more than 50 lakh employees and 62 lakh pensioners are expecting better salary structure. However, the Central Government announced the Eighth Pay Commission in January 2024, but the chairman of the Commission has not been appointed yet. Due to this, there is a possibility of delay in its formation and implementation.
The increase in DA will increase salary
Government salary is not just based on basic salary. Many other benefits like dearness allowance (DA), house rent allowance (HRA), travel allowance (TA) are also included. In the last few years, the share of allowances has increased and now their share of total salary has reached 50 percent. In such a situation, the increase in DA directly affects the salary.
The 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, it can be announced a big announcement before Independence Day.
There was a great increase in 6th Pay Commission
The role of fitment factor is important in deciding the salary increase. The Seventh Pay Commission fixed it 2.57. New reports estimate that this figure may be between 1.83 and 2.46 under the Eighth Pay Commission. If the 2.46 fitment factor is approved, then the salary of an employee with ₹ 18,000 can go directly to ₹ 44,280.
Comparing the previous pay commissions, the Seventh Pay Commission had recommended a basic increment of only 14.3%, which has been the lowest in the last several decades. At the same time, the Sixth Pay Commission gave a huge increase of 54%. However, due to the amendments made from time to time in the allowances, the employees also got a total increase of up to 23% under the Seventh Pay Commission.
In such a situation, now everyone’s eyes are on the central government. If the DA is announced by August 15 and the process of the Eighth Pay Commission also progresses, then it will be a great relief for millions of employees and pensioners.