With the emergence of 2025, the new hopes arise for central government employees in regard to the 7th Pay Commission and any revision thereof. Use of a new set of resolutions for the 8th Pay Commission sometime in the future is thus certain; meanwhile, anticipated changes and developments under the present 7th Pay Commission do stand a good chance of creating much enthusiasm among some 50 lakh central government employees and 65 lakh pensioners scattered across India.
A Fitment Factor Revision: An Age-Old Demand
One of the bigger hopes for the 7th Pay Commission employees in 2025 is an **increase in the fitment factor, which currently remains at 2.57 times. This basically determines the basic salary hike pattern. Employees’ union demands for a long time that the government should increase the fitment factor to 3.68 so as to increase the minimum basic pay from ₹18,000 to about ₹26,000. This will increase the salary intake and benefits for an employee manifold; provided, of course, it is implemented as such.
Dearness Allowance (DA) Increases In 2025
Additional to the fitment factor, an increasing attention remains on Dearness Allowance (DA). Buying trends in the latest index for AICPI-IW seem to have culminated to an increase of DA by 12% in July 2025, starting from the current 50%. This, in turn, will increase the basic monthly salary and other allowances such as HRA and travel allowances, which are dependent on the parent’s basic salary and DA.
Furthermore, the DA arrears for the previous months are also expected to be settled, which would prove as a significant one-time payout for the employees and pensioners alike.
Pension Revisions And Retirement Benefits
Retired central government employees are also watching the developments closely and hoping to get their pension revised and DA arrears included. Reports have further suggested that the government is actively looking into pension anomalies, as well as proposals to rationalize post-retirement benefits within the framework of the 7th Pay Commission.
Outlook On The 8th Pay Commission
While nothing has so far been set in stone, the chatter about the 8th Pay Commission being set up before 2026 is gradually growing. In the recent past, experts were of the opinion that the Centre may very soon constitute a committee to look into pay revision post the currently working pay structure.
Also Read:DA Arrears Officially Approved: Salary And Pension Hike For Govt Staff