7th Pay Commission Ends with Lower DA Than 6th CPC; 8th Pay Panel Likely Delayed

Central government employees and pensioners will get a 3% Dearness Allowance (DA) hike for July–December 2025, taking DA from 55% to 58%. This will be the last hike under the 7th Pay Commission, which ends on 31 December 2025.

6th Pay Commission vs 7th Pay Commission

During the 6th Pay Commission period (2006–2015), the Dearness Allowance (DA) had climbed to 119% by July 2015. In contrast, under the 7th Pay Commission (2016–2025), the DA is projected to be just 58% by December 2025.

This means employees will end up with less than half the DA compared to the 6th CPC.

The 5th Pay Commission Rule Was Different

During the 5th Pay Commission (1996–2005), DA was merged into basic pay whenever it crossed 50%. That’s why DA at the end of its tenure was only 41%, even though employees benefited from the merger.

How DA is Calculated

The Dearness Allowance (DA) is reviewed twice annually, in January and July, based on the All India CPI-IW index. For the period July 2024 to June 2025, the average index stood at 143.6, resulting in a revised DA of 58%.

Delay in 8th Pay Commission

The 8th Pay Commission should start from January 1, 2026, but so far:

• No Terms of Reference (ToR) have been issued.
• No chairman or members have been appointed.

Since implementation usually takes 18–24 months, the 8th Pay Commission is likely to be delayed until 2027.

What Relief Do Employees Get?

• Regular DA and DR hikes continue.
• When the new commission is implemented, benefits are paid with retrospective effect, so employees do not lose out completely.

Read More: 8th Pay Commission Calculator: See What ₹20,300 Basic Pay Looks Like with 1.92x, 2.0x, and 2.86x Fitment Factors.

Conclusion

While the festive DA hike offers short-term relief, the 7th Pay Commission ends with much lower DA than the 6th CPC. With the 8th Pay Commission delayed, employees may have to wait until 2027 for a bigger salary boost, though DA hikes and arrears will soften the impact.

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