DA Hike: Lakhs of government employees and pensioners are looking forward to the announcement of Dearness Allowance (DA) and Dearness Relief (DR) hike under the 7th Pay Commission. Recent AICPI data suggests a good DA hike. Know how much the DA hike could be and when it will be announced.
DA Hike July 2025: Lakhs of central government employees and pensioners are waiting for a possible increase in Dearness Allowance (DA) and Dearness Relief (DR). This increase happens twice a year. The first time is at the beginning of the year i.e. in January and the second in the middle i.e. in July. Employees and pensioners have received the DA/DR hike for January. Now they are waiting for the July hike.
This may be the last DA/DR hike under the 7th Pay Commission. Because the government is preparing to implement the 8th Pay Commission from 2026. Let us know how much this DA/DR can increase and when it will be announced.
AICPI-IW rises to 144 in May
The All India Consumer Price Index for Industrial Workers (AICPI-IW) is the most important index for increasing dearness allowance. According to the data of the Labor Bureau, in May 2025, AICPI-IW increased by 0.5 points to reach 144. Earlier it was 143 in March and 143.5 in April. This is the third consecutive month when this index has gone up. The higher this indicator remains, the more scope there is for increase in DA / DR.
How much can DA/DR increase?
Looking at the current trend, there is a possibility of a 3% increase in DA/DR from July. If the 3% increase gets the approval of the government, then the DA/DR of central employees and pensioners can increase from the current 55% to 58%. However, the final decision has to be taken by the central government and its official announcement is yet to be made.
When will the DA hike be announced?
Even though the new DA rates will be considered effective from July 1, traditionally it is often announced in September or October just before the festival season. In such a situation, employees and pensioners may have to wait for a few weeks. When it is announced, the arrears of increase from July are added to the salary of that month.
How is DA hike decided?
DA is calculated based on the average AICPI-IW data of the last six months, as per the recommendations of the 7th Pay Commission. It is an allowance given to balance the effect of inflation in salary and pension.
Last revision before next hike?
Experts believe that this hike could be the last hike before the implementation of the 8th Pay Commission. At present, the government has not notified the terms of reference of the 8th Pay Commission, but preparations are underway in that direction.
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