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About Central Pay Commission Updates

Welcome to Central Pay Commission Updates — your reliable source for the latest information about the 7th and upcoming 8th Central Pay Commission, Dearness Allowance (DA) hikes, salary structures, and government employee benefits.

Our mission is to bring you accurate, timely, and simplified updates on government pay revisions, policy changes, and official notifications that affect central government employees, pensioners, and public sector workers.

We aim to make complex government pay data easy to understand and accessible to everyone. Stay informed about fitment factors, pay matrices, and DA calculations — all in one place!

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Last Updated: October 2025

DA hike effective July 2025

DA Hike Effective July 2025: Central Government Employees Get a 3% Boost

The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners, effective 1st July 2025. This revision will raise the DA from 55% to 58% of the basic pay/pension, offering much-needed relief against inflation.

🧾 Key Highlights

• Effective Date: July 1, 2025
• DA Increase: 3%
• New DA Rate: 58% of Basic Pay
• Beneficiaries: Over 48 lakh employees and 67 lakh pensioners
• Financial Impact: Around ₹10,083 crore annually to the exchequer

💰 Why the DA Hike?

The Dearness Allowance is revised twice every year — in January and July — based on the All India Consumer Price Index (AICPI) for industrial workers. Due to a steady rise in prices during early 2025, the government decided on a 3% hike to offset the inflationary burden on employees and pensioners.

📈 Impact on Salary and Pension

The 3% DA hike means employees will now receive 58% of their Basic Pay as DA. For instance:

Basic Pay (₹)	Old DA @55% (₹)	New DA @58% (₹)	Increase (₹)
30,000	16,500	17,400	900
50,000	27,500	29,000	1,500
70,000	38,500	40,600	2,100

This hike will also benefit pensioners receiving Dearness Relief (DR), ensuring parity between serving and retired employees.

🗓️ Arrears Payment

Employees are likely to receive arrears for July, August, and September 2025 along with the October 2025 salary. Pensioners can expect similar arrear payments credited to their accounts next month.

🎉 Festive Boost

Coming ahead of the Diwali season, this DA hike serves as a welcome festive bonus for many households, enhancing purchasing power and supporting consumption in the economy.

🧮 DA Hike Calculation Formula

The DA percentage is determined using the following formula based on the Consumer Price Index (CPI-IW):

DA% = [(Average AICPI for last 12 months – 115.76) / 115.76] × 100

This ensures that salary adjustments are directly linked to inflation trends.

🏛️ Next DA Hike – January 2026

The next DA revision is expected in January 2026, which may coincide with early discussions on the 8th Pay Commission recommendations. Analysts predict another 3–4% hike depending on inflation figures.

📰 Conclusion

The DA hike effective July 2025 reaffirms the government’s commitment to ensuring financial stability for Central Government employees and pensioners. With the 8th Pay Commission discussions gaining momentum, this increase marks another positive step towards fair compensation and inflation adjustment.

Pay revision of ICAR Scientists

Following approval of UGC pay revision by Government of India, ICAR set up committee for its adoption. The ICAR on its General Body held on November 2017, discussed and approved the seventh pay for the scientists of ICAR. The pay will be revised after approval of competent authority and on releasing order.

Retirement age of Central Government employees may be increased from 60 to 62

The Union Cabinet Committee may increase age of retirement by two years from 60 to 62 for all CG Employees…

It would be effect from 1st March 2014 and meeting will be held on 27th or 28th this month.

The Congress-led United Progressive Alliance (UPA) is likely to take a major decision of increasing the retirement age of Central government employees by two years, from 60 to 62 this week. This would be applicable from March 1.

It would be one of the major decisions to be taken by the Cabinet before the model code of conduct for the general elections kicks in. In the Thursday meeting, the Cabinet is also likely to recommend dates for the elections. These could be notified on March 5.

“The government may clear the increase in age this week,” said a source. It is likely to be a part of the terms of reference of the Seventh Pay Commission, expected to file its report in 2017. The panel, however, can recommend an interim relief through the move.

The increase in retirement age would be happening after 15 years. In 1998, it was increased to 60 from 58 following implementation of the Fifth Pay Commission. Experts said it would defer payment of retirement benefits. However, sources confirmed this would not be applicable for employees retiring on February 28.

7th pay commission constituted

The Cabinet on Friday gave mandate to the 7th Pay Commission for revising salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners.

The move comes ahead of general elections due in April-May.

“The decision will result in the benefit of improved pay and allowances as well as rationalisation of the pay structure in case of Central Government employees and other employees included in the scope of the 7th Central Pay Commission (CPC),” an official statement said after the Cabinet meeting.

The Commission, it said, will make its recommendations within 18 months of the date of its constitution.

“It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised,” said the release on CPC’s term of reference.

Headed by former Supreme Court Judge Ashok Kumar Mathur, the CPC has been asked to “examine, review, evolve and recommend changes that are desirable and feasible” regarding the principles that should govern the emoluments structure including pay, allowances and other facilities or benefits.

The recommendations, as per the terms of reference, have to be made while keeping in view the economic conditions in the country, need for fiscal prudence and the need to ensure that adequate resources are available for developmental expenditures and welfare measures.

The CPC’s report will be applicable on Central Government employees, All India Services, personnel of the Union Territories, officers and employees of the Indian Audit and Accounts Department, Members of regulatory bodies, officers and employees of the Supreme Court and personnel of Defence Forces.

The panel has also been asked to examine the “principles which should govern the structure of pension and other retirement benefits”, including revision of pension for those who have retired prior to the date of effect of these recommendations.

There are about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners.

The CPC has also been asked to provide the likely impact of the recommendations on the finances of the state governments (which usually adopt the recommendations with some modifications).

It has also been asked to keep in view the best global practices and their adaptability and relevance in Indian conditions while making the recommendations.

Oil Secretary Vivek Rae is full time Member of the Commission, while Rathin Roy (Director, NIPFP) is part-time Member and Meena Agarwal (OSD, Department of Expenditure) is Secretary.