Big news for central government employees. Central employees are eagerly awaiting the recommendations from the Eighth Pay Commission. At the same time, they’re also looking forward to the dearness allowance (DA) for the first half of the year. A decision regarding the DA, which covers January to June, is expected soon. Historically, this decision is usually made in March, with the government typically announcing it around the time of Holi.
This year, it seems likely that the DA increase will be revealed before Holi, which falls on March 14, 2025. There’s speculation that the cabinet meeting prior to Holi could approve this increase.
As for how much the DA might go up, the central government is considering a boost of 3 to 4 percent. If that happens, the DA for central employees would rise to 57 percent. Just to recap, in October 2024, the Union Cabinet had already approved a 3 percent increase in DA and dearness relief for the July half of the year for both central employees and pensioners.
Previously, the allowance was set at 50 percent. The government reviews and adjusts this allowance twice a year, based on the basic salary, following the guidelines of the Seventh Pay Commission.
Central employees are eagerly anticipating the recommendations from the 8th Pay Commission. Earlier this January, Prime Minister Narendra Modi greenlit the establishment of this commission to reassess the salaries of central staff and the allowances for pensioners.
This move is set to positively impact around 5 million central government employees and approximately 6.5 million pensioners. Just a quick reminder: the Seventh Pay Commission was set up in 2014, and its recommendations took effect on January 1, 2016. That commission’s term will wrap up in 2026.