DA News: Modi government can give a big gift to central employees. Central employees can get the benefit of 4 percent increase in dearness allowance (DA) from July 2025. This has been said in reports based on recent inflation data.
After this increase, dearness allowance will increase from the current 55 percent to 59 percent. This increase in dearness allowance will be effective from July, but its official announcement can be made in August or September-October near the festive season. This has been said in a report by India Today.
DA can reach 59% based on CPI data
Dearness Allowance (DA) is calculated on the basis of All India Consumer Price Index for Industrial Workers (AICPI-IW). This index has increased by 0.5 percent to 144 in May 2025. An increase has been seen in the index in the last three months. It was 143 in March 2025, 143.5 in April and now it has reached 144 in May 2025.
If the upward trend in the index continues and it reaches 144.5 in June, then the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW) is expected to reach around 144.17. When it is adjusted using the 7th Pay Commission formula, the DA rate reaches 58.85 percent. In such a situation, the government can increase the dearness allowance to 59 percent from July 2025.
The announcement can be made in September or October.
Dearness Allowance (DA) is revised twice a year. This revision usually takes place in January and July. Dearness Allowance is decided on the basis of 12-month average of All India Consumer Price Index for Industrial Workers (AICPI-IW). The increase in dearness allowance will be effective from July, but it is usually announced later. In previous years, the government has done such revisions around the festive period in September or October. This year too, it can be announced around Diwali.
This will be the final increase in dearness allowance under the Seventh Pay Commission, as its term ends on 31 December 2025. The government has announced the Eighth Pay Commission earlier this year, but there has been no further progress in it. The government is yet to appoint the chairman and members of the new commission.
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