DA hike July 2025: The month of September… the sound of festivals. More than one crore central employees and pensioners of the country pick up newspapers in the morning, search news websites, just for one news – “Did DA increase?” This is not just a news, but an emotion related to their household budget, children’s fees and future planning.
So now, the wait for those crores of people is about to end.
The latest data of AICPI index for July 2025 has arrived and it has created a huge wave of happiness even before the festive season. The figures clearly indicate that the Dearness Allowance (DA) of central employees is set to increase by 3%.
DA hike: When will it be announced and when will the money be available?
When will it be announced
If sources are to be believed, the government is fully prepared to give Diwali gift to its employees. This 3% hike may be finalized in the cabinet meeting to be held in October.
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When will it be implemented
This increase will be considered effective from July 1, 2025. This means that whenever it is announced, you will get the entire outstanding amount for July, August and September (and maybe October) as arrears.
Complete math of DA: How was the 3% increase decided?
Dearness Allowance depends on the data of AICPI index. Let us see how the journey from January to June 2025 was:
| Month | CPI(IW)BY2001=100 | DA% Monthly Increase |
| Jan 2025 | 143.2 | 56.39 |
| Feb 2025 | 142.8 | 56.72 |
| March 2025 | 143.0 | 57.09 |
| April 2025 | 143.5 | 57.47 |
| May 2025 | 144.0 | 57.85 |
| June 2025 | 145.0 | 58.18 |
As you can see, the total figure of DA reached 58.18% at the end of June 2025. According to the rules, DA is not given in decimal, so it is considered fixed at 58%.
DA Hike: How much will it affect your salary? (Salary Calculation)
An increase of 3% DA means that you will get some extra money in your pocket every month. Let’s see how much the increase will be according to your basic salary.
If your basic salary is ₹18,000:
| Description | Amount (in Rs.) |
| Existing DA (55%) | ₹9,900 per month |
| New DA (58%) | ₹10,440 per month |
| Monthly hike | ₹540 |
| Annual increase | ₹6,480 |
The maximum basic salary at Level-1 is ₹56,900
| Description | Amount (in Rs.) |
| Existing DA (55%) | ₹31,295 per month |
| New DA (58%) | ₹33,002 per month |
| Monthly hike | ₹1,707 |
| Annual increase | ₹20,484 |
(Note: This is only the calculation of basic salary and DA. Other allowances like HRA, TA are also added to your final salary.)
What will be the further process?
Now the Expenditure Department of the Finance Ministry will prepare a proposal for this 3% increase. Under the 7th Pay Commission, this proposal will be placed in the Cabinet meeting to be chaired by Prime Minister Modi. It will be officially announced as soon as the Cabinet approves it.
Conclusion
This 3% increase is not just a figure. It is a big relief for crores of government employees and pensioners in the era of rising inflation. This announcement to be made in October will double the happiness of their festivals and will bring a new hope for their future. Now we are just waiting for that cabinet meeting, which will bring smiles on crores of faces.
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