There is important news for around 5.5 million central government employees and 6.9 million pensioners.
Work related to the 8th Central Pay Commission is moving faster after its Terms of Reference (ToR) were approved nearly 10 months ago.
September has brought several key updates, including a possible DA hike, the Commission’s state visits, pension-related discussions,
and fresh expectations about salary revisions. Here’s everything you need to know.
DA May Rise to 63% This Month
Central government employees and pensioners are likely to receive the July 2026 Dearness Allowance (DA)
and Dearness Relief (DR) announcement in September.
At present, DA stands at 60% after a 2% hike in January 2026. Based on the latest AICPI-IW data, another 3% increase is expected. If approved, the total DA will rise to 63%.
According to Manjeet Singh Patel, President of the All India NPS Employees Federation, the government usually announces the DA hike in September, although it may sometimes be delayed until October.
8th Pay Commission Continues Meetings Across States
The 8th Pay Commission is meeting employee organisations and other stakeholders across the country before preparing its recommendations.
The Commission completed its two-day visit to Jaipur on September 1. It is scheduled to visit Puducherry on September 8, Chandigarh on September 16
and 18, and Bengaluru on October 7 and 8. Earlier, meetings were held in Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra, West Bengal, and Uttar Pradesh.
Pension Revision Demand Moves Forward
There has also been progress on the demand to revise pensions for retired employees.
The Department of Personnel and Training (DoPT) has forwarded petitions from the All India Defence Employees Federation
and the All India RMS, MMS & Postal Pensioners Association to the Department of Expenditure under the Ministry of Finance.
These organisations want the 8th Pay Commission to clearly include pension revision for people who retired before January 1, 2026.
They have referred to a similar decision taken during the 4th Pay Commission in 1985.
Why Employees Expect a Bigger Salary Increase
Employee unions believe that salaries could increase more than they did under the 7th Pay Commission, even if the new fitment factor is lower.
The 7th Pay Commission used a 2.57 fitment factor, while the 8th Pay Commission is expected to have a lower factor of around 2.1.
However, unions say the financial benefit could still be higher because the DA structure is different.
They estimate employees may get an overall benefit of around 53%, compared to nearly 32% under the 7th Pay Commission.
When Will the New Pay Commission Be Implemented?
The 8th Pay Commission was formed in November 2025 and has been given 18 months to submit its report.
The government has set January 1, 2026, as the target date for implementing the recommendations.
However, the final rollout will happen only after the Union Cabinet approves the Commission’s report.