7th Pay Commission: There is a good news for the central government employees. Even though everyone is waiting for the 8th Pay Commission to be implemented, but before this, another Dearness Allowance (DA) can be increased under the 7th Pay Commission.
7th Pay Commission: There is a good news for the central government employees. Even though everyone is waiting for the 8th Pay Commission to be implemented, but before this, another Dearness Allowance (DA) can be increased under the 7th Pay Commission. It is expected that DA can be increased by 3 to 4% in July 2025. That is, the DA of the employees can increase to 58% or 59%.
DA increases twice a year
The government increases DA twice every year. For the first time, the announcement for January is made in February-March. Whenever the government announces, it is considered to be applicable from January 1. For the second time, the announcement for July is made in September-October. But it is considered to be applicable from July 1. It does not matter when the government is announcing it. Employees get that much arrears along with the salary. This increase is done to give relief to the employees from inflation.
How is DA decided?
DA is calculated on the basis of Consumer Price Index (CPI-IW) for industrial workers. This figure is released by the Labor Ministry every month.
According to the formula of the 7th Pay Commission, DA (%) is decided in this way
DA (%) = [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100
Here 261.42 is the base CPI-IW of the year 2016.
DA also depends on inflation figures
Although the complete average of CPI-IW has not come till May 2025, a decline has been recorded in CPI-AL and CPI-RL for agriculture and rural laborers.
CPI-AL: 2.84%
CPI-RL: 2.97%
Both of these are not directly used in DA, but show the trend of inflation.
How much can DA be?
If CPI-IW remains stable or increases slightly till June, then the government can increase it by 3% to 4%. This can increase the total DA to 58% or 59%. The final announcement of the increase in DA will be made after the CPI-IW figures come at the end of July and after cabinet approval in September-October. Then its benefit will be available with arrears from July 1, 2025.
How much will be the increase in salary?
If there is a 3% increase in DA, then the salary of an employee with a basic salary of Rs 18,000 will increase by about Rs 540. According to 55% DA, currently Rs 9,990 DA is available on Rs 18,000. That is, after the 3% increase in DA to 58%, it will increase to Rs 10,440. This will provide relief to lakhs of employees and pensioners, especially at a time when the announcement of the 8th Pay Commission is awaited.
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