DA Hike 7th Pay Commission: Good news can be received in July 2025 for about 1.2 crore employees and pensioners of the Central Government. Now it is expected that there may be an increase of 2% to 3% in Dearness Allowance (DA) for July-December 2025
DA Hike 7th Pay Commission: Good news can be received in July 2025 for about 1.2 crore employees and pensioners of the Central Government. Now it is expected that there may be an increase of 2% to 3% in Dearness Allowance (DA) for July-December 2025. Currently, all central employees and pensioners are getting 55% DA, which is applicable from January 2025. If there is an increase, then DA can increase to 57% or 58%. The government mostly announces DA hike July before Diwali. This time also it can be seen that the government can announce an increase in DA in October.
What is DA?
DA i.e. dearness allowance is an additional money that the government gives to its employees and pensioners to reduce the impact of inflation. It is increased twice every year – once in January and second time in July.
For January-June, it is usually announced in March.
For July-December, the announcement is made in October or November.
How is DA decided?
DA is determined based on data called CPI-IW (Consumer Price Index for Industrial Workers). This index tells how much the cost of living of common people is increasing.
The formula of DA is:
DA (%) = [(CPI-IW average – 261.42) ÷ 261.42] × 100
This formula has been decided by the 7th Pay Commission.
What do the figures of March 2025 indicate?
The CPI-IW index stood at 143.0 in March, indicating stability after the decline of the last few months. This figure was 143.2 in January. The inflation rate in March was 2.95%, which is slightly higher than February. Inflation in food items remained under control, due to which the index registered a slight increase.
How much can DA increase in July 2025?
Based on the CPI-IW average so far, it is estimated that DA can reach 57% or 58%. It will depend on how the CPI-IW figures for April, May and June remain. If the slight increase in CPI-IW continues, then DA can be increased to 58%.
When will the 8th Pay Commission come?
The 7th Pay Commission is ending on 31 December 2025. Earlier it was expected that the recommendations of the 8th Pay Commission would be implemented from January 1, 2026, but till now there has been no clear indication from the government. This shows that the 8th Pay Commission will not be implemented on time.
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