DA Hike 2025: The central government revises the dearness allowance and relief rates of employees and pensioners twice every year in view of inflation, which is announced around Holi and Diwali. DA was increased by 2 percent from January 2025, which was announced in March.
Now the next DA is to be increased from July 2025, which is expected to be announced after Rakshabandhan. If we look at the AICPI INDEX figures so far, DA is expected to increase between 2 to 3 percent, although the May-June figures are yet to come. The May figures will be released on June 30, which will give a big indication of how much dearness allowance will increase from July 2025.
Will dearness allowance increase by 2 or 3 percent from July? AICPI INDEX 143.2 in January 2025, AICPI-IW 142.8 in February, 143.0 in March and 143.5 in April with an increase of 0.5 points, making the DA score 57.95% which is indicating 2 to 3%. May June figures are yet to come which will be released by 30 June and 31 July 2025, only after this it will be clear how much DA will increase from July 2025.
If there is an increase in the figures of May June, then 3% DA increase in July (from 55% to 58%) is considered certain. If there is a decline, then like January, DA can increase by up to 2% (from 55% to 57%). However, it is yet to be officially confirmed how much DA will increase in July.
If DA increases by 2%, then those getting 18,000 basic salary will get a benefit of Rs 10,260 and if it increases by 3%, then they will get a benefit of Rs 10,440. The new rates will be applicable from July 2025, which is expected to be announced in the Modi cabinet meeting to be held around Diwali, in such a situation, arrears are sure to be received.
Know how dearness allowance is calculated?
- There is a formula to calculate the dearness allowance of central government employees and pensioners. The formula is: 7th CPC DA% = [{12-month average of AICPI-IW (base year 2001=100) for the last 12 months – 261.42}/261.42×100]
- This formula will be applicable to those central government employees and pensioners who get salary based on the recommendations of the Seventh Pay Commission. DA%= (392.83-261.42)/261.42×100 = 50.26
- The average CPI-IW for the last 12 months is 392.83. As per the formula, DA comes to 50.28% of the basic pay. Hence, the central government can increase the dearness allowance up to 50% (ignoring decimal points).
Most Read Articles:
- Post Office Scheme Update: These five government savings schemes give higher returns than FD, check details
- IRCTC Rules are changing from July 1: Know how to authenticate IRCTC user ID with Aadhaar; this is the process
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
