Central Government Employees Anticipate 3% DA Hike Amid 8th Pay Commission Discussions
DA hike: Next Dearness Allowance increase to be 3%? Here's what employees expect from 8th Pay Commission
Mint
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The Finance Ministry recently announced a 2% increase in Dearness Allowance (DA) for central government employees, raising it from 58% to 60%. As discussions for the 8th Central Pay Commission commence, employees are hopeful for a further 3% hike based on rising inflation data, benefiting around 50 lakh employees and 65 lakh pensioners.
- 01The recent 2% DA increase for central government employees takes effect from January.
- 02Employees expect a potential 3% DA hike based on inflation trends and AICPI data.
- 03The 8th Central Pay Commission will review salaries and allowances every ten years.
- 04Around 50 lakh central government employees and 65 lakh pensioners will benefit from the DA adjustments.
- 05Stakeholder consultations for the 8th Pay Commission are scheduled for March and April 2026.
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The Finance Ministry of India announced a 2% increase in Dearness Allowance (DA) for central government employees and pensioners, effective from January, raising the DA from 58% to 60%. This adjustment aims to help households cope with inflation, as DA is a percentage of employees' basic salaries. The DA is revised biannually based on the All-India Consumer Price Index (AICPI), with announcements typically made in March and October. Employees are now looking forward to a potential 3% DA hike based on recent inflation trends from the Labour Bureau's AICPI for Industrial Workers, which showed a rise in the index. This potential increase would benefit approximately 50 lakh employees and 65 lakh pensioners, with individual hikes depending on their respective pay levels. The 8th Central Pay Commission is set to review salaries and allowances, gathering input from various stakeholders, with consultations scheduled for March and April 2026. This commission plays a crucial role in determining the financial benefits for government employees and retirees.
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The anticipated DA hike will provide additional financial support to government employees and pensioners amid rising inflation, improving their purchasing power.
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