DA Hike 8th Pay Commission BIG Update: Modi govt likely to announce double good news before Diwali, DA may increase by…

This increase will benefit more than 1.2 crore employees and pensioners. They will have extra money to spend during Dussehra and Diwali.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Updated: September 21, 2025, 1:58 PM IST

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https://www.india.com/business/da-hike-8th-pay-commission-salary-pension-narendra-modi-central-emploees-finance-ministry-nirmala-sitharaman-jitendra-singh-insurance-medical-provident-fund-8088270/ Copy

8th Pay Commission Latest Update

DA Hike 8th Pay Commission: The Modi government is likely to implement the 8th Pay Commission ahead of Diwali, Chhath Puja. Along with this, the Dearness Allowance (DA) may also see an increase. Both these decisions will benefit central employees and pensioners. According to the reports, the Modi government is likely to announce a 3 percent DA hike next month. If this happens, the current 55 percent DA will rise to 58 percent.

This increase will benefit more than 1.2 crore employees and pensioners. They will have extra money to spend during Dussehra and Diwali. Currently, central government employees receive 55 percent DA. It is worth noting that the central government revises DA twice every year—first for January to June and then for July to December.

Here are some of the key details:

• In March 2025, the government had raised the DA by 2 percent for the January-June period
• The hike in the Dearness Allowance took it from 53 percent to 55 percent.
• Now, an increase of 3% is being discussed for July-December 2025.
• If implemented, around 1 crore employees and pensioners will benefit from it.
• DA directly affects salaries and pensions since it is calculated on the basis of the basic salary.
• For example, if a pensioner’s basic pension is Rs 9,000, then with 55 percent DA, they receive Rs 4,950 as DA, making the total pension Rs 13,950.
• If DA increases to 58 percent, the DA will rise to Rs 5,220, and the total pension will become Rs 14,220. In other words, this means an additional benefit of Rs 270.

On 16 January 2025, the government clarified that the 8th Pay Commission would be constituted. According to sources, its Terms of Reference (ToR) could be finalized before Diwali, and the commission may also be formed around that time. The commission is likely to have six members. The time frame for submitting the report could be set at 15–18 months.