DA hike before 8th Pay Commission: Dearness allowance likely to increase to 55%, says report

Ahead of the formal set up of the 8th Pay Commission, the central government employees are hoping for a hike in their dearness allowance (DA) rate in March 2025.

Currently, the formation of the 8th Central Pay Commission (CPC) is underway. It is expected that the new pay panel may be set up soon and it will start its work from next month (April 2025).

The rate of DA is decided by the central government based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) of the last six months. This data is periodically released by the Labour Bureau in Shimla.

As per the recent data shared by the Labour Bureau, the AICPI-IW data declined by 0.8% to 143.7 in December 2024.

Meanwhile, the central government employee's representatives are also expecting only a 2% hike in DA, according to a report

Recently, NDTV Profit quoted Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, as saying that they are also expecting a 2% hike in DA based on their calculations.

The report further quoted Shiv Gopal Mishra, secretary of NC-JCM (Staff Side) as saying that there is a “probability” of 2% hike in dearness allowance.

As per the norms based on the recommendations of the 7th Pay Commission, DA hike is usually announced by the central government in March and implemented from January 1.

While the chairperson and members of the 8th Pay Commission are likely to be finalised in coming weeks, employees are hoping for a hike in DA from 53% of basic pay to 55% soon.

The final decision on DA hike will be taken by the Union Cabinet chaired by Prime Minister Narendra Modi.