When To Expect the Last DA Hike Before the 8th Pay Commission?

Around 1 crore central government employees and pensioners are eagerly awaiting the next big salary boost. The government is set to announce the Dearness Allowance (DA) and Dearness Relief (DR) hike soon. This is a key increase that happens twice a year in July and December. This upcoming hike will be the final one under the 7th Pay Commission, which started in January 2016 and will end this December.

What Is Dearness Allowance (DA) and Why Does It Matter?

DA is an important part of a government employee’s salary, designed to protect their income from inflation. It adjusts salaries to keep up with rising living costs. Pensioners also get a similar benefit called Dearness Relief (DR). This hike affects around 33 lakh employees and 66 lakh pensioners under the 7th Pay Commission.

When Will the DA Hike Be Credited?

Though the DA hike usually takes effect from July, it is announced with a delay and credited around October, coinciding with India’s festive season. This timing makes the increase a welcome festive bonus for many government employees and pensioners.

How Much DA Hike Can Employees Expect Before the 8th Pay Commission?

In March 2025, the government already raised the DA by 2%, increasing it from 53% to 55% of the basic pay. Some news reports suggest that the next DA hike could be about 3%, pushing the total DA to around 58%.

For example, someone with a basic pay of ₹25,000 would see their DA increase from ₹13,750 to about ₹14,500. This would serve as a helpful addition to offset inflation.

When will the 8th Pay Commission Form?

The 7th Pay Commission’s term ends this December 2025. The government has not yet set up the 8th Pay Commission, and it might take 1.5 to 2 years to start functioning, with implementation expected from January 2026. Meanwhile, employees and pensioners will receive arrears for the period until the new commission is in place.

Read more: Car Loan for Tesla Model Y RWD: What You'll Actually Pay Over 5 Years at 9.5% Interest.

Conclusion

The upcoming DA hike in July 2025 will likely be the last under the 7th Pay Commission, providing a modest salary boost amid inflation. While the 8th Pay Commission’s recommendations are awaited, government employees and pensioners should plan their finances wisely to make the most of these changes.

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