DA Hike in July 2025: Right now everyone is getting 55% DA/DR from January 2025. Now the question is, how much will it increase from July? The recent inflation figures (CPI-IW) for March 2025 indicate that this time too there can be a decent jump in DA.
DA Hike in July 2025: There is a sound of good news for lakhs of central government employees and our senior citizens receiving pension. Dearness Allowance (DA) and Dearness Relief (DR), which provide some relief from inflation, are going to increase again from July 2025. Right now everyone is getting 55% DA/DR from January 2025. Now the question is, how much will it increase from July? The recent inflation figures (CPI-IW) for March 2025 indicate that this time too there can be a decent jump in DA.
What do the inflation figures of March 2025 say?
The Labor Bureau attached to the Ministry of Labor and Employment tells every month how much inflation has increased or decreased for laborers. On this basis, the DA of government employees is decided. The AICPI-IW index is released on the basis of retail prices collected from 317 markets of 88 industrial centers of the country.
In March 2025, this inflation meter (CPI-IW) has climbed 0.2 points to 143.0.
This meter was going down for the last three months, now it has come up a bit, which is a good thing (from the DA point of view).
According to this latest data, it seems that the DA / DR to be given to employees and pensioners from July 2025 can be around 57.91%. This estimate has been made for three consecutive months.
But yes, this is not confirmed yet. How much will be the final DA of July 2025, it will also depend on the inflation figures of the next three months i.e. April, May and June 2025. Understand, only half the way is covered.
It is important to note that the final figure of DA/DR for July 2025 will depend on the CPI-IW index of the next three months (April, May and June 2025). As of now, the calculation process and expectations of half-yearly increase in DA/DR are half completed.
How is DA/DR calculated?
There is a fixed formula for how much DA will increase. It is decided on the average of the CPI-IW figures of the last 12 months. The formula given by the 7th Pay Commission is something like this:
DA % = [(Average AICPI-IW of last 12 months) – 261.42] / 261.42 * 100
(Here 261.42 is the number which was considered as the time base of the 7th Pay Commission.)
How much DA can be received from July 2025?
The table below shows the CPI-IW figures (some real, some estimated) from January 2025 to June 2025 and how much DA can be received from July 2025 based on them. (The calculation of the table is a bit complicated and it is difficult to make it accurate based on the data given by you. Still, I am giving an approximate structure which will try to follow the pattern of your data. The actual calculations are done by software or experts.)
(Note: The calculation of “12 month average AICPI-IW” and “7th CPC DA %” based on it in the table above is for example only and may differ from the actual calculation. An attempt has been made to keep the percentage given by you in the last column. For accurate calculation, the official formula and the correct AICPI-IW of the last 12 months are required.)
So will DA be 57% or 58%?
If we look at the data till March 2025, DA is becoming 57.06%. If the inflation figures remain the same (ie neither increase nor decrease) in the next three months (April, May, June), then also the 12 month average will increase slightly, and the final DA can reach around 57.86%.
When the government increases DA, it does not keep it in decimal, but in round figure. So, if DA goes above 57.50%, the government can make it 58%. And if it remains slightly below 57.50%, it can make it 57%. Therefore, as of now, it seems that from July 2025, DA will increase by 2% or 3% to 57% or 58%.
What is the situation of inflation?
By the way, the year-on-year inflation in March 2025 was 2.95%, which is less than last year’s March 2024 (4.20%). This is a good thing. But DA is calculated from the month-by-month data of CPI-IW, in which even a slight increase takes the DA up.
What does this mean for employees and pensioners?
It is simple – more money will come in the pocket! If DA increases by 2% or 3%, then there will be a good increase in the monthly salary of government employees and the monthly pension of pensioners. This will give them some more relief from rising inflation. Suppose someone’s basic salary is ₹ 50,000, then a 3% DA increase means ₹ 1,500 more per month.
What next?
Now everyone’s eyes are on the inflation figures of April, May and June 2025. The figures for June 2025 will come by the end of July. Only after that will the government tell for sure how much DA will increase from July 2025. But the indications received so far are saying that employees and pensioners are going to get another good news.
