Dearness Allowance (DA) has been an important part of the salary for Central Government employees, but DA growth was the slowest in the 7th Pay Commission. While DA reached 74% in 5th CPC and 125% in 6th CPC, it is still around 58–60% in 7th CPC. The main reason for this was the Covid period, when DA and DR were frozen for 18 months. DA is revised twice a year and the 8th Pay Commission report is unlikely to come before mid-2027. By then there may be 2–3 more DA hikes, taking DA to around 70%. Since DA becomes zero as soon as the new Pay Commission is implemented, a lower DA can bring a more effective salary hike in the next pay structure. Experts believe that this is the reason why 8th Pay Commission can give better salary jump for employees.
DA stuck at 58%, but 8th CPC can give biggest pay jump. Money Live | DA stuck at 58%, but 8th CPC could deliver biggest pay jump
