The compression ratio in the above graph refers to the ratio of the maximum salary earned by a secretary to the Government of India and the minimum salary earned by a central government employee.
The biggest increase in salaries occurred during the 6th Pay Commission, when employees received a 54% increase in their basic pay.
While the salary commission is implemented once every 10 years, the central government is provided with an increase in dearness allowance approximately every six months. The increase in DA is intended to offset the effects of inflation.
With the last 3% DA increase in October, allowances amounted to 53% of the basic salary set under the 7th Pay Commission. Since the DA exceeded 50% of the basic salary, demands for establishment of the 8th Pay Commission accelerated.
In particular, the 8th Pay Commission will need to consult with all stakeholders, so it may take some time beyond January 1, 2026 to submit its report. Employee unions expect that if the implementation of the 8th Pay Commission is delayed, the government will start paying arrears from January 2026 onwards.