Central government employees and pensioners are awaiting the Eighth Pay Commission. However, there has been no official announcement regarding the basic salary increase and when. However, given the current inflation, employees may receive the hike in July and a dearness allowance (DA) hike before the Eighth Pay Commission.

Important news for employees

While millions of central government employees are demanding a significant salary hike under the Eighth Pay Commission, they may receive some relief in the form of dearness allowance. According to a report in India Today, new inflation data released by the Labor Bureau is likely to confirm this news.

Employees' unions are making significant demands ahead of the Eighth Pay Commission, as rising prices are significantly increasing daily expenses. Spending on essential items is becoming more expensive.

The All India Consumer Price Index (AICPI-IW) for industrial workers, which plays a key role in determining dearness allowance (DA), has been increased from 149.1 in March 2026 to 149.9 in April 2026. Retail inflation has also been raised from 4.27% to 4.46%. This increase will directly impact DA calculations.

According to inflation index data available until April 2026, the dearness allowance of central government employees is expected to increase. Based on the average data for the past 12 months, it is estimated that the DA could reach approximately 62.51 percent. Since the government quotes DA percentages in whole numbers, this rate can be assumed to be 63 percent.

Since employees currently receive 60 percent DA, a 3 percent increase is likely this time. However, a final decision will be made only after reviewing inflation index data for May and June 2026 and approval by the Union Cabinet.

PC: SaamTV