It appears that the Central government employees and pensioners have long been awaiting for the news on the 8th Pay Commission.
DA Hike Likely To Boost The Salary Hike
While it takes some time, there is some festive cheer ahead as there is a fresh hike in Dearness Allowance (DA) could be announced before Diwali.
This move will be positivly affecting over 1.2 crore employees and retirees as it will boost their spending power just ahead of Dussehra and Diwali celebrations.
Presently, central government employees are receiving DA at 55%, further experts are suggesting a 3% hike is on the cards, in line with inflation.
As we already know that DA allowances are revised twice a year, effective January and July — and this time, the July 2025 hike could be around 3-4% according to the analysts.
Usually, the announcement regarding the hike is made around February-March or September-October so that the hike can be applied retrospectively from January and July.
This implimentation ensures that employees and pensioners can cope with rising prices and inflationary pressures.
Please note that these revision is not arbitrary as it is based on a set calculation method linked to the Consumer Price Index for Industrial Workers (CPI-IW), compiled monthly by the Labour Bureau.
As per this, the formula under the 7th Pay Commission uses CPI-IW averages to calculate the exact hike.
Its base year is 2016, with 261.42 as the reference index.
A Welcome Cushion During The Festive Season
This simply ensures that DA revisions are tied directly to inflation trends, offering employees a measure of financial stability.
This can be understood with simple example for instance, an entry-level central government employee with a basic salary of Rs 18,000 currently receives Rs 9,990 as DA at 53%.
After this revision, DA is expected to be raised by 3%, their allowance would increase to Rs 10,440 — which turns into an extra Rs 540 per month.
This jump would be even more significant for employees as it would be drawing a higher basic pay.
This news of DA hike will come as a welcome cushion during the festive season as it would definitely help the employees and pensioners manage rising costs.
It appears that the 8th Pay Commission remains a longer-term demand, the DA revision offers temporary relief and adds to the festive spirit.
