DA hiked by 2% under 7th Pay Commission, but these central employees get up to 9% jump — here’s why

For most employees, this is the key takeaway. But there’s another important detail that has gone largely unnoticed. The Centre also revised DA rates for employees who are still drawing salaries or pensions under the 5th and 6th Pay Commission structures. And in their case, the increase is significantly higher.

According to the official notification issued by the Ministry of Finance, DA for employees under the 6th Pay Commission has been raised from 257% to 262%.

Meanwhile, those under the 5th Pay Commission will now get 483%, up from 474%. In percentage terms, this translates into a 5% hike for 6th CPC employees and a 9% jump for those under the 5th CPC — much higher than the 2% increase under the 7th CPC.

Why are employees still on older pay commissions?

This naturally raises a question: if the 7th Pay Commission has already completed its term on December 31, 2025, why are some employees still receiving salaries or pensions under older pay structures?

The answer lies in how pay commission recommendations are implemented across different types of organisations.

Not all government-linked institutions adopt pay revisions at the same time. Many autonomous bodies, universities, research institutions, and grant-in-aid organisations follow the Centre’s pay commissions with delays — sometimes running into months or even years. Employees in such institutions may continue to receive salaries under older pay structures until the revised system is formally adopted.

There are also pension-related complexities. Some retirees, especially those who retired before 2006 or 2016, have faced anomalies in pension revisions. In several cases, issues related to formula changes or minimum pension rules have led to disputes, with some matters still under litigation. As a result, these pensioners continue under older pay commission frameworks.

Another factor is the nature of employment. Contractual and casual staff, who do not fall under the regular payroll system, often do not receive full pay commission benefits. This can also lead to continued linkage with older structures.

Who are these employees?

Broadly, the categories include employees of autonomous bodies, staff of grant-in-aid institutions, contractual workers, and certain pensioners whose cases are still pending resolution. These groups form a relatively small but significant segment that continues to be governed by earlier pay commission frameworks.

DA revisions across pay commissions

The latest revision, effective January 1, 2026, has brought changes across all three pay structures:

7th Pay Commission: DA increased from 58% to 60%

6th Pay Commission: DA increased from 257% to 262%

5th Pay Commission: DA increased from 474% to 483%

The 7th CPC continues to cover the majority — around 50 lakh central government employees and nearly 67 lakh pensioners.

What happens next?

Even though the 7th Pay Commission completed its 10-year term in December 2025, its framework will continue to be used for DA calculations until the 8th Pay Commission is implemented. The government has already initiated work on the 8th CPC under the chairmanship of Justice Ranjana Desai.

Once the new pay commission is implemented, the current DA will be merged with basic pay, and the DA component will reset to zero under the new system.

Till then, DA will continue to be revised twice a year — for the January–June and July–December periods. The next hike is expected around October 2026, likely ahead of the festive season.

The bigger picture

While the 2% DA hike under the 7th Pay Commission may appear modest, the overall picture is more nuanced. Employees under older pay structures are seeing sharper increases, and differences in implementation timelines continue to create variations across different categories of staff.

As the transition towards the 8th Pay Commission gathers pace, these gaps are expected to narrow. But for now, India’s government salary system remains a mix of old and new — with each revision telling a slightly different story.

Disclaimer:

This article is based on official notifications and publicly available information regarding Dearness Allowance (DA) revisions for central government employees and pensioners. The details are for general informational purposes only. Actual salary or pension changes may vary depending on individual service conditions, department rules, and applicable pay commission structures. Readers are advised to refer to official government orders or consult their respective departments for precise calculations and eligibility.