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As we already know that Prime Minister Narendra Modi-led Union Cabinet had approved a 2 per cent increase in Dearness Allowance (DA) and Dearness Relief for the central government employees and pensioners paid under the 7th Pay Commission during March this year.

What to Expect?

Under these latest updates, the increased DA/DR came into effect from January 1, 2025, it simply means that the arrears for the period were given to all the employees and pensioners.

The central government employees and pensioners are entitled to get DA/DR at the rate of 55 percent after this DA/DR increase in March.

Considering the present numbers, the central government has over 48 lakh employees and more than 66 lakh pensioners.

The minimum basic pay for central government employees is Rs 18,000, while pensioners receive a minimum basic pension of Rs 9,000 as per the 7th Pay Commission.

It simply indicates that a government employee now receives Rs 27,900 per month (minimum basic salary + DA), while pensioners get Rs 13,950 per month (minimum basic pension + DR) at 55 per cent DA/DR rate

Usually, the central government hikes the DA/DR twice a year with its first increase coming into effect from January 1 and the other coming into effect from July 1.

So, it is almost that time of the year when the central government will announce the next increase in the DA/DR rate most likely in September 2025, considering the past trends.

What About 8th Pay Commission ?

If you are wondering about the amount, the next DA/DR hike is expected to be around 3 per cent as per several media reports.

After this implementation, the DA/DR will rise to 58 per cent.

If we consider the minimum basic salary of Rs 18,000, a 3 per cent DA hike will stand at Rs 540.

Further making the total minimum salary under 7th Pay Commission to Rs 28,440 at 58 per cent DA.

Similar to this, a 3 per cent DR hike will raise the Rs 9,000 minimum basic pension by Rs 270, hence bringing the total minimum pension to Rs 14,220 at 58 percent rate.

Besides this, the central government approved the 8th Central Pay Commission in January 2025 which is still awaiting the official notification.

It appears that the government is yet to finalise the members and Chairman of the new Pay Commission.

The official notification regarding the 8th Central Pay Commission would be issued in due course, said Pankaj Chaudhary, the Minister of State in the Finance Ministry, in the Rajya Sabha.