Central government employees, pensioners may get 3% DA hike soon

India Sep 19, 2025

Good news for central government employees and pensioners: a 3% Dearness Allowance (DA) hike is expected just in time for Diwali 2025.
This would bump their total DA up to 58% of basic pay, offering some extra financial support during the festive season.
Over 1.2 crore people stand to benefit from this move.

Pay commission updates

Looking ahead, the 8th Pay Commission is likely to be implemented from January 1, 2026, with some major updates on the table.
The minimum basic pay could jump from ₹18,000 to ₹51,480, and pensions might rise significantly too—potentially by about a third.
These changes are expected to impact around 50 lakh employees and 65 lakh pensioners, aiming to help everyone keep up with rising living costs.