DA Hike News: A week after revising the dearness allowance (DA) for central government employees and pensioners covered under the 7th Pay commission, the Centre has now revised the key allowance for the staff drawing salaries and pensions under the 5th Pay Commission and 6th Pay Commission. This has been communicated through an Office Memorandum (OM) by the Finance Ministry.
How much DA hike has been announced for central govt employees under 5th Pay Commission?
The Finance Ministry in its order said that the rate of DA for employees who continue to draw their pay in the pre-revised pay scale as per 5th Central Pay Commission has been enhanced from the existing rate of 466% to 474% of the basic pay, effective 1st July, 2025.
For the uninitiated, the 5th Pay Commission’s 10-year term ended in December 2005, giving way to the 6th Pay Commission, which started its term in January 2006 and lasted till December 2015. However, a section of government employees is still drawing their pensions under the 5th and 6th Pay Commissions. Their pay structures still follow the norms for the 5th and 6th pay panels. After a pay panel’s term ends, the DA gets merged with the basic once the new pay panel term starts.
How much DA hike has been announced for employees getting salaries under 6th Pay Commission?
The rate of DA for employees drawing their pay in the pre-revised pay scale/Grade Pay as per the 6th Central Pay Commission has been enhanced from the existing rate of 252% to 257% of basic pay, effective 1st July, 2025.
Which central government employees are still covered under 5th and 6th Pay Commissions?
Some central government employees are still under the 5th and 6th Pay Commission because the recommendations of subsequent pay commissions, like 7th, were not extended to their specific organisations, particularly certain Central Autonomous Bodies (CABs) and Central Public Sector Enterprises (CPSEs). These organisations still have different pay structures that maintain their alignment with the 5th Pay Commission’s pay scales and allowances.
3% DA hike announced for employees under 7th Pay Commission
The Centre last week announced the DA hike of 3% for over 1 crore serving employees and pensioners. This took the key allowance to 58% from 55%. This was the last DA revision under the 7th Pay Commission, which will complete its term in December 2025.
Now, employees and pensioners are keenly awaiting the formal notification of the 8th Pay Commission and the appointment of key members. Once the panel is formed and starts working, it is expected to take at least 1 to 1.5 years to submit its report to the government. Once satisfied with the panel’s recommendations, the government announces the implementation of the suggestions.