7th Pay Commission DA update: Good news for employees as govt likely to announce DA hike on THIS date; check details
7th Pay Commission DA update: In a significant update for the millions of central government employees and pensioners who are awaiting a DA hike under the 7th Pay Commission, reports suggest that the Union government could announce the same as early as this month. When will DA hike be announced?
According to media reports, citing sources, the Narendra Modi government is likely to announce the DA hike by August 15, but the benefits will be retrospectively implemented from the month of July.
Over 5o lakh central government employees and 62 lakh pensioners are eagerly awaiting the implementation of the 8th Pay Commission as well as Dearness Allowance (DA) hike under the current 7th Pay Commission, which will cease to be in force on December 31, 2025. How much DA hike can employees expect?
The DA hike will depend on the All India Consumer Price Index (AICPI-IW), which increased by by 0.5 points to 144 in May 2025. The index has increased for three consecutive months, from 143 in March, 143.5 in April and 144 in May. Considering this trend, its likely that dearness allowance could increase from 3-4 percent from July.
The final DA hike will be determined by June 2025 AICPI-IW data, which will be released in August.
In case of a 3 percent increase, the DA will be hiked to 58%, from the current 55%, while a 4 percent hike would mean a 59% DA for central government employees.
DA is reviewed twice a year, and adjusted according to inflation based on the Consumer Price Index (CPI). When will 8th Pay Commission be implemented?
Going by the implementation of previous pay commissions, it usually takes about 18 to 24 months for the government to implement the recommendations. Thus, its unlikely that 8th Pay Commission would be implemented before mid-2027.
Currently, 7th Pay Commission recommendations are in force, and will remain so till December 2025.
A new pay commission is constituted every 10 years which tenders suggestions for revision of salary and pension of central government employees and pensioners in wake of the prevailing economic scenario in the country.
The 8th Pay Commission was announced by the Union government in January this year.
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