Central government employees have recently received positive news with a hike in Dearness Allowance (DA), raising the allowance by 3%, from 50% to 53%, under the 7th Pay Commission. Now, with the DA reaching the 50% mark, speculation about the 8th Pay Commission has intensified. According to sources, a final decision on the 8th Pay Commission may be taken in November, with a formal announcement expected in the upcoming 2025 budget if the proposal is approved.
The Joint Consultative Machinery (JCM) meeting is expected to be held in November, where representatives of central employees and government officials will discuss the potential formation of the 8th Pay Commission. If all goes as planned, the commission may be established early next year, with new pay recommendations coming into effect in January 2026.
Under the previous commission, the minimum wage proposal was set at INR 18,000 per month instead of the INR 26,000 suggested by the International Labour Commission’s guidelines and Dr. Aykroyd’s formula. With the 8th Pay Commission on the horizon, employees hope for a substantial raise that better addresses current economic conditions. If established, this would bring a considerable pay hike, providing relief for central government employees.
According to official guidelines, a new pay commission is typically formed every 10 years. The last commission, the 7th Pay Commission, was established on February 28, 2014, with its recommendations implemented from January 1, 2016. Given the decade-long cycle, expectations are high that the 8th Pay Commission will be in effect starting January 2026.
In addition to the upcoming pay commission, the recent DA increase of 3% has further benefited central government employees, retroactively effective from July 1. This DA raise, alongside the expected 8th Pay Commission, promises significant financial improvements. Historically, the central government revises DA twice a year, in January and July, benefiting employees across the country.
Meanwhile, state government employees in West Bengal are still under the 6th Pay Commission, with a DA rate of 14%. There has been no confirmation on when or if they will receive the benefits of the 7th Pay Commission. This contrast between state and central employees highlights differing benefits across government sectors, though the upcoming 8th Pay Commission could set new standards for public sector wages across India.
The forthcoming commission is expected to address wage adjustments that align with rising living costs and other economic factors, making it highly anticipated among central government employees.