DA Hike / Employees may get a gift before this date, there will be a huge increase in salary!

DA Hike: The coming week can be very important for lakhs of central government employees and pensioners. According to media reports, by August 15, 2025, the central government can announce an increase in dearness allowance (DA). Along with this, after the last installment of the Seventh Pay Commission, now there is a discussion to speed up the process of the Eighth Pay Commission.

Seventh Pay Commission ends, hopes of eighth are high

The term of the Seventh Pay Commission is going to end on 31 December 2025. With this, about 50 lakh central government employees and 62 lakh pensioners are waiting for the announcement of the Eighth Pay Commission. The government had announced the Eighth Pay Commission in January 2024, but the chairman of the commission has not been appointed yet. Due to this delay, there is uncertainty in the formation and implementation of the commission.

DA hike: Direct impact on salary

The salary of central government employees is not limited to the basic salary only. It includes many other benefits like Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA). The share of these allowances has increased in recent years and now they constitute about 50% of the total salary. The increase in DA has a direct impact on the salary of the employees.

Dearness Allowance is reviewed every six months on the basis of Consumer Price Index (CPI). There has been no official statement from the government on the DA review of July 2025, but sources are saying that a big announcement can be made on this before Independence Day.

Fitment Factor: The key to salary increase

The role of fitment factor is important in salary increase. The Seventh Pay Commission had fixed it at 2.57. According to new reports, the fitment factor in the Eighth Pay Commission can be between 1.83 to 2.46. If the fitment factor of 2.46 is applied, the salary of an employee with a basic salary of ₹ 18,000 can increase to ₹ 44,280.

Account of previous pay commissions

The Seventh Pay Commission had recommended a basic salary hike of only 14.3%, which was the lowest in the last several decades. At the same time, the Sixth Pay Commission gave a spectacular hike of 54%. However, due to timely revision of allowances under the Seventh Pay Commission, employees got an overall salary hike of up to 23%.

Future expectations

Central government employees and pensioners are now waiting for August 15. If the DA hike is announced by this date and the process of the Eighth Pay Commission is expedited, it will be a big relief for lakhs of people. This will not only strengthen their financial position but will also increase their confidence in the government.