As Diwali draws near, central government employees are keeping a keen eye on potential festive announcements from the Modi government.
From the much-anticipated 8th Pay Commission to a likely Dearness Allowance (DA) and Dearness Relief (DR) hike, as well as Diwali bonuses, the upcoming weeks could bring significant cheer to over one crore employees and pensioners.
8th Pay Commission: A Long-Awaited Boost
The constitution of the 8th Pay Commission is expected to be the biggest festive gift for central government staff. Approved by the Union Cabinet in January this year under Prime Minister Narendra Modi, the 8th Pay Commission will come into effect from January 1, 2026.
This revision will recalibrate basic pay, allowances, and pensions, potentially offering a substantial boost to salaries and retirement benefits. Employees are particularly awaiting the official announcement of the Terms of Reference (ToR), which could arrive as early as October, just in time for the festival season.
DA and DR Hike: Timing Is Everything
Alongside pay revisions, millions are anticipating news on the next DA and DR adjustments. Earlier this year, the government approved an increase from 53 per cent to 55 per cent, effective from January 1, 2025. Reports suggest the new revision, covering the July to December 2025 period, is likely to be unveiled in October, with experts predicting an announcement by mid-month, potentially ahead of Diwali.
The move would bring additional relief to government employees, cushioning the impact of rising living costs and maintaining purchasing power during the festive season.
State-Level Signals and Bonuses
While central employees await confirmation, state governments are already acting on similar fronts. The Tripura government, for instance, has announced a 3 per cent hike in both DA and DR for its employees and pensioners, effective October 1.
Alongside these adjustments, the possibility of Diwali bonuses remains high, further underlining the government’s intent to support its workforce during the festival.
Festive Cheer Beyond the Government Payroll
This year, the Modi government has already delivered festive relief to the wider public. From September 22, new GST reforms reduced prices for approximately 370 items, easing household budgets ahead of Diwali. The pending announcements for government employees would complement this broader approach, signalling a season of financial cheer for citizens and employees alike.