Employees DA Hike 2025: Government employees and pensioners are waiting for DA hike in July 2025. Know how much DA can increase and when will the government announce it.
Employees DA Hike 2025: Central government employees and pensioners are waiting for a possible increase of up to 3% in Dearness Allowance (DA) and Dearness Relief (DR) effective from July 2025. Traditionally, this announcement is not made in July but around the festive season i.e. in September or October. But, its benefit is added from July itself.
The government reviews the DA / DR rates effective from January 1 and July 1 twice every year. But its official announcement is usually made a few months later. For example, the hike effective from January 1 is announced in March and the hike of July 1 in September-October. In such a situation, the DA announcement of July 2025 can also be on the same pattern.
If there is an increase of 3% on the basis of current figures, then the total DA will increase from 55% to 58%.
How is dearness allowance decided?
DA is calculated on the basis of All India Consumer Price Index- Industrial Workers (AICPI-IW). This index was 143 in March 2025, which has reached 144 by May. If this trend continues, then the possibility of an increase of 3% becomes stronger.
How much has DA increased so far?
The rate of DA has increased continuously since the implementation of the 7th Pay Commission. While it was 0% in 2016, it has reached 55% by January 2025. A possible increase of 3% in July can take it to 58%. If it increases by another 2% after the next review in January 2026, then this figure can touch 60%.
Role of 8th Pay Commission
In the 8th Pay Commission proposed from January 2026, it is possible that the DA accumulated till that time may be merged into the basic salary, which can be up to 60%. This is a normal process during pay commissions. In this, the salary structure is revised and the DA calculation starts again from zero.
The final decision is in the hands of the government
At present, this is a possible calculation, which is based on the inflation index. But the final decision will come only after approval by the central government in the cabinet meeting. Employees and pensioners will have to wait a few more months for this announcement.
