Top News

This gift will double their happiness during the festive season and will also increase the hustle and bustle in the markets.

First gift: Eighth Pay Commission

The government had made it clear on January 16, 2025 that the Eighth Pay Commission will be formed. If sources are to be believed, its terms and conditions (Terms of Reference) will be decided before Diwali 2025 and formation of the panel can also begin. This panel may have 6 members, who will submit their report in 15-18 months.

But the news is that this time the government wants to complete the work quickly. The target is to have the report ready within 8 months, so that the new recommendations can be implemented from January 1, 2026. The biggest focus of the Eighth Pay Commission is the fitment factor, which is discussed to be kept at 1.92. This means that the basic salary of employees may increase by almost double. This will not only increase the salary, but will also bring major changes in pension and other allowances.

Second gift: Increase in Dearness Allowance (DA)

Before Diwali, the government will announce the increase in Dearness Allowance (DA) for July-December 2025. Currently the DA of central employees is 55%, but based on AICPI data from January to April it has reached 58%. That means an increase of 3% is almost certain.

This DA hike will not only benefit the employees but will also increase the pension of the pensioners. This will provide financial relief to lakhs of families.

How much difference will it make to salary?

Suppose, the basic salary of an employee is Rs 50,000.

• At 55% DA he is getting Rs 27,500.
• At 58% DA this amount will increase to Rs 29,000.

That means a profit of Rs 1,500 every month and additional savings of Rs 18,000 annually! If the recommendations of the Eighth Pay Commission are also added to this, there will be a big jump in the salary. Not only this, DA is likely to reach 61% by January 2026, which will also help in the calculation of the new pay commission.

Adding to the glow of the festival

As soon as the news of Pay Commission and DA hike comes, the expectations of lakhs of families increase. It is not just a matter of salary, but it also affects children's education, household budget and future savings. This time on Diwali, if news of DA hike and Pay Commission is received along with bonuses and gifts, then the enthusiasm of the festival will increase further. The brightness of the markets is also expected to double.

What does history say?

• Sixth Pay Commission: Created in 2006, implemented in 2008.
• Seventh Pay Commission: Created in 2014, implemented from 2016.
• Eighth Pay Commission: Formation in 2025, likely to be implemented from 2026.

Every 10 years a new pay commission comes and brings major changes in the salary and pension of the employees. The same is expected this time too.

Diwali 2025 will be very special for central employees. While the increase in DA will provide immediate relief, their pay structure will completely change in 2026 with the formation of the Eighth Pay Commission. This time, along with the lighting of lamps, a glow of happiness will be visible on the faces of the employees as well.

Frequently asked questions

1. When will the Eighth Pay Commission be formed?
The constitution of the panel and terms and conditions are expected to be decided before Diwali 2025.

2. When will its recommendations be implemented?
It is likely to be implemented from January 1, 2026.

3. What will be the fitment factor?
There is discussion that it can be kept at 1.92.

4. How much will DA increase from July 2025?
Likely to increase from 55% to 61%.

5. Who will get the benefit of DA hike?
To both central employees and pensioners.