Mumbai, September 25: Since the Centre is expected to announce a Dearness Allowance (DA) hike and proceed with the 8th Pay Commission, this Diwali could bring double the joy to over 12 million central government employees and pensioners. The 8th Pay Commission's two major rulings have the potential to greatly increase pensions and salaries.

The PM Narendra Modi government is reportedly planning to increase the DA by 3%, from the current 55% to 58%. The purpose of the biannually revised DA is to protect pensioners and employees from inflation. The rate was raised from 53% to 55% in March 2025, marking the most recent revision. 7th Pay Commission: Central Government Employees Likely to Get 3% DA Hike Before Diwali, Check Details.

8th Pay Commission Employees Salary Hike

Monthly incomes will be immediately increased by this impending DA hike, which is anticipated to be formalised in October in time for Dussehra and Diwali. For example, the current DA for a minimum basic pension of INR 9,000 is INR 4,950. This will rise to INR 5,220 at 58%, or an extra INR 270 a month.

Despite appearing modest at first, the annual cumulative increase offers a discernible reprieve, particularly during the holiday season when household expenses tend to rise. 8th Pay Commission News Today: Salary Hike Must Come Into Effect From January 2026 Despite 8th CPC Implementation Delay, Says JCM Leader.

The 8th Central Pay Commission's Terms of Reference (ToR) are anticipated to be finalised by Diwali, as the Centre is actively interacting with state governments in parallel.

Though the commission was approved in January 2025, official notification is pending. Union Minister Jitendra Singh recently confirmed that the panel will be constituted soon and held a follow-up meeting with the Pension Secretary to also discuss the Old Pension Scheme (OPS).

Sources indicate the commission will comprise six members and work on a fast-tracked timeline. While past pay commissions have taken up to 18 months, the government aims to submit recommendations within eight months, potentially enabling implementation from January 1, 2026.

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