DA Hike 7th Pay Commission: Central government employees and pensioners may get good news in July. The government had made a marginal increase of only 2% in DA for January-June 2025. This increase was the lowest in the last 78 months, due to which about 1.2 crore employees and pensioners were disappointed
DA Hike 7th Pay Commission: Central government employees and pensioners may get good news in July. The government had made a marginal increase of only 2% in DA for January-June 2025. This increase was the lowest in the last 78 months, due to which about 1.2 crore employees and pensioners were disappointed. Now this time it is expected that Dearness Allowance (DA) can be increased by 2% to 3% for July-December 2025. At present, central employees and pensioners are getting 55% DA, which is applicable from January 2025. If there is an increase of 2 to 3 percent, then DA can increase from 55 percent to 57 to 58 percent.
What is DA and how is it decided?
DA i.e. dearness allowance is a type of inflation-reducing allowance given by the government to its employees and pensioners. It is increased twice every year.
For January-June – It is usually announced in March.
For July-December – It is announced in October or November.
How is DA calculated?
DA is calculated on the basis of the average data of 12 months of CPI-IW (Consumer Price Index for Industrial Workers). For this, there is a formula decided by the 7th Pay Commission.
DA (%) = [(Average of CPI-IW – 261.42) ÷ 261.42] × 100
Relief from CPI-IW figures of March 2025
The CPI-IW index rose by 0.2 points to 143.0 in March 2025, which is a positive sign after the continuously falling inflation since November 2024. In January 2025, this figure was 143.2, that is, now there is some stability in it. The annual inflation rate in March was 2.95%, which is slightly higher than February. The special thing was that the inflation of food products remained under control, due to which a slight increase was recorded in CPI-IW.
How much can DA increase in July 2025?
According to the average CPI-IW till March 2025, the estimated figure of DA has reached 57.06%. If the CPI-IW remains stable or increases slightly in April, May and June 2025, this average can go up to 57.86%. If this figure is above 57.50%, then DA can be increased to 58%. If it remains below this, then DA can be limited to 57%. That is, an increase of 2% to 3% is almost certain.
Will the 8th Pay Commission be implemented on time?
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 2026, but looking at the current preparation, this does not seem to be happening.
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