Government employees will get Diwali gift! There may be a significant increase in salary

Government employees are expected to get Diwali gift soon. It is reported that the government has approved the final DA under the Seventh Pay Commission. According to media reports, DA is expected to increase by 3%, which will increase the total DA to 58%. This will be the second consecutive time DA will increase by 3%.

This decision will benefit 48 lakh central government employees and 66 lakh pensioners. The 8th Pay Commission will be applicable in January 2026, which will change the entire equation of dearness allowance. Let us also tell you what kind of update has come for dearness allowance from July.

What is dearness allowance?

Dearness allowance is an additional amount to help government employees and pensioners to help in dealing with the effects of inflation. With a steady increase in the prices of daily needs, dearness allowance ensures that the price of salary and pension is not reduced. The rate of dearness allowance is calculated using the Consumer Price Index (CPI-IW) for industrial workers, which measures a change in the cost of living.

By connecting dearness allowance to this index, the government ensures that the growth is appropriate and based on real value activities in the market.

Has dearness allowance official confirmation?

The Labor Bureau has recently released CPI-IW data for June 2025, which has increased to 145.0 from one points from May. Based on this, dearness allowance (DA) has reached 58 percent, which is 3 percent more than the previous 55 percent. Dearness allowance will be applicable from July 1. It is expected to be approved by the cabinet in September, after which payment will be made on 1 October with arrears of July and August.

This means that employees will get a revised DA in the salary of October, as well as a lump sum payment of the outstanding salary of the last three months.

New Pay Commission from January 2026

With this DA increase, the 7th Pay Commission will end. That is, the DA hike to be held in July will be the last under the 7th Pay Commission. Subsequently, from January 2026, the 8th Pay Commission will be applicable. The entire equation of DA hike will change. Its preparation has been going on for several months. According to experts, under the 8th Pay Commission, there will be a significant increase in the salary of central government employees. The pay scale will also increase. According to experts, under the new Pay Commission, the salary of central government employees can be seen by 30 to 34 percent.