Diwali Gift for Central Govt Employees by Modi Govt: 8th Pay Commission & DA Hike Likely to be announced soon

Diwali Gift for Central Govt Employees by Modi Govt: 8th Pay Commission & DA Hike Likely to be announced soon

New Delhi: Central government employees and pensioners may receive festive season gifts ahead of Diwali from the Modi Government, with the Centre expected to approve a hike in Dearness Allowance (DA) and Dearness Relief (DR), along with the Terms of Reference (ToR) for the 8th Pay Commission.

According to an NDTV India report, the DA and DR may be increased by 3%, raising them from 55% to 58% of the basic pay of all the central government employees in India. The hike, aligned with the 7th Pay Commission framework, will help employees and pensioners cope with inflation.

Also Read:- FinMin Order: Tax Treatment under Unified Pension Scheme with Existing Income Tax Rules for Central Government Employees

At the same time, the government may clear the ToR for the 8th Pay Commission, paving the way for its formal constitution. Once the commission setup is complete, it will consult stakeholders and recommend the fitment factor and allowances for the next round of salary revisions.

Earlier, the Confederation of Central Government Employees and Workers (CCGEW) had written to Finance Minister Nirmala Sitharaman, highlighting growing discontent among employees over the delay in DA and DR announcements.

8th Pay Commission Timeline

Usually, pay commissions are formed once every decade. They typically take around 18 months to finalise recommendations, followed by three to nine months of government scrutiny before implementation.

Although the Union Cabinet approved the formation of the 8th Pay Commission in January 2025, the panel has yet to be officially constituted and announced. Employee unions are awaiting the final clearance of the ToR, which will lay down the framework for the Commission’s work.

Brokerage estimates suggest that the new fitment factor may fall between 1.8 and 2.46. However, employees should note that the effective hike could be moderated, as DA resets to zero once a new pay commission takes effect.

If cleared, the twin announcements of DA/DR hikes and the 8th Pay Commission ToR could bring welcome relief and good news for lakhs of employees and pensioners ahead of the festive season.