7th Pay Commission: AICPI data from January to April is showing that there may be an increase of up to 3% in dearness allowance (DA) in July 2025. With this, DA can cross 58%. The data of the coming month will further strengthen this estimate.
7th Pay Commission: Good news has come regarding dearness allowance for central employees and pensioners. July 2025 can bring a big relief. According to AICPI (All India Consumer Price Index) data from January to May 2025, dearness allowance (DA Hike) has reached 57.85%. In such a situation, once again in the coming days, a big jump can be seen in the dearness allowance of the employees. Looking at the numbers of the current index, it is almost certain that there can be a jump of up to 3 percent in dearness allowance. The data for the month of June is yet to come. Under the 7th Pay Commission, employees will get a direct increase of 3% in DA, which will take it to 58%.
AICPI index rises
The numbers from the AICPI index decide how much the dearness allowance can increase. Based on the numbers between January and June 2025, it will be decided how much dearness allowance the employees will get from July 2025. So far, the numbers for January, February, March, April and May have come. The latest data of AICPI has been released for May, in which a good increase has been seen in the index. The index has increased by 0.5 points as compared to April. Now it has reached 144.0. Let us tell you, till now the central employees coming under the 7th Pay Commission are getting 55 percent dearness allowance. Now it is almost certain that the dearness allowance will increase by 3 percent in July. In January, the index number was at 143.2 points, due to which the score of dearness allowance was 56.39 percent. The index was at 142.8 points in February, 143 points in March and 143.5 points in April. On this pattern, dearness allowance reached 56.72 percent, 57.09 percent, 57.47 percent by April. Now with the data of May, the score of dearness allowance has gone up to 57.85 percent. Now only the data of June will be awaited.
3% DA Hike confirmed!
There is also good news for central employees because now at least 3 percent dearness allowance will increase. This is because, even if the AICPI index remains at 144 in June, the dearness allowance will reach 58.08%. At the same time, even if there is a decline of up to 0.5 points in the index, the dearness allowance will increase by only 3%.
Trend of AICPI and DA calculation
The AICPI index and DA score from January 2025 to April 2025 has been something like this.
By May, DA has crossed 57%. But, it can reach 58 by the time June numbers come. If this trend continues in June, then from July the DA of central employees will be 58%.
When will be the next revision in dearness allowance?
The next revision in dearness allowance (DA Hike) for employees is to be implemented from July 2025. But, it is announced by September or October. Actually, the June figure will come by the end of July. After this, it will be decided on this basis how much the increase is to be. After this, the file will reach the Finance Ministry from the Labor Bureau and then the Cabinet will approve it. After this, the increased DA will also be paid from the salary of the month in which the approval is received. The payment of the intervening months is done through arrears.
What will be the effect of a 3% increase in DA?
Suppose the basic salary of an employee is ₹ 30,000.
Dearness Allowance Percentage – DA Amount
Existing DA 55% – ₹16,500
New DA 58% – ₹17,400
Difference (Increase)
₹900
That is, the salary will increase by ₹900 every month. The annual increase will be around ₹10,800.
Effect of 8th Pay Commission on DA
The 8th Pay Commission is yet to be constituted. After this, there will be a revision in the salary of the employees according to the recommendations. But, the role of dearness allowance will also remain in the new pay commission. The government has made it clear that the new pay commission will be implemented from January 1, 2026. In such a situation, it is believed that the dearness allowance will reach 61%. The calculation of allowances like DA and HRA on the new basic will be different, due to which a big jump in the net salary is possible.
What does the rule say?
The government revises DA every 6 months – once in January and then in July. DA is determined on the basis of the average of the AICPI (IW) index. After every increase reaches 50%, the new basic salary is decided by merging the dearness allowance. But, it was not merged when it reached 50 percent. But, when the new pay commission comes, it will be zeroed and merged.
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