Union Cabinet led by Prime Minister Narendra Modi approved the 8th Central Pay Commission for central government employees and pensioners on January 16. Once the government implements the new Pay Commission, the central government employees will get a pay raise.

Notably, Manmohan Singh-led UPA government established the 7th Pay Commission in February 2014 following which, the Pay Commission submitted its report to the government in November 2015. Furthermore, the government implemented it from January 2016, which increased the pay of central government employees and pensioners.

In October, the Centre announced a 3% DA hike for the July-December period, increasing the total DA to 53%. The next hike in DA is due from January 2025.

Notably, the Central Government revises the DA for its employees and the Dearness Relief (DR) for pensioners twice a year, once for the January-June period and next for the July-December period.

7th Pay Commission DA Hike: How Much And When To Expect?

Typically, DA hikes are announced with a 2-month delay, and employees/pensioners receive 2 months’ arrears with their March or September/October salaries/pensions.

In this case, the next DA hike may be announced in March. The DA hike may range between 3-4%.

How Much Increase In The Basic Pay?

If an individual has the current minimum basic pay of Rs 18,000 and the DA for January 2025 is increased by 3%, his/her minimum salary will rise by Rs 540.

Under current 53% DA, he/she is entitled to the salary (minimum basic pay + DA) of Rs 27,540. However, if the DA is increased to 56%, he/she will be paid Rs 28,080.

If the DA is increased by 4%, it becomes 57%. At this rate the minimum basic salary will rise by Rs 720 to Rs 28,260 monthly.