DA Hike July Update: Big news for 1.2 crore government employees, dearness allowance increased by this much percentage

News, Digital Desk- ( Last DA hike under 7th Pay Commission)  The hike in dearness allowance (DA/DR) of central employees and pensioners in July 2025 will be the last hike under the 7th Pay Commission. 

Due to the new figures of rising inflation rate, it is expected that this increase may be more than before, due to which the DA/DR for the period July-December 2025 is likely to increase more.

Due to the increase in AICPI-IW (All India Consumer Price Index for Industrial Workers) in March and April 2025, it is expected that DA can reach around 57.95%, i.e. an increase of 3% is possible from July 2025.

The last DA hike of 7th Pay Commission will be implemented from July 2025-

The installment of dearness allowance (DA Hike Update) that central employees and pensioners will get from July 2025 is expected to be better than the 2% hike of January-June 2025, which is currently 55%. It is important to note that this will be the last DA revision under the 7th Pay Commission, as the commission expires on December 31, 2025.

Central employees expect more DA this time-

DA for the second half of the year 2025 is to be implemented from July 1, 2025, but its official announcement is usually made in October or November around Diwali. Meanwhile, an increase of 0.5 points has been registered in the AICPI-IW index in April 2025, which has increased the hope of a good increase in DA for the employees.

AICPI-IW index increased for the second consecutive month-

The AICPI-IW index rose to 143.5 in April 2025, while it was 143.2 in January 2025. This is the second consecutive month when the index has seen an increase.

There was a decline in January and February, but in March 2025 the index increased by 0.2 points to 143.0. Although it was slightly lower than January, it is still considered a positive sign because a continuous decline was seen from November 2024 to February 2025.

How much will the figures of May and June increase DA-

The figures released in March and April indicate that DA may be around 57.95%, but the figures for two more months - May and June 2025 - are still pending. It will depend on this how much DA will be increased from July 2025.

The latest update on inflation rate-

The annual inflation rate fell slightly to 2.94% in April 2025, which was 2.95% in March 2025. Last year in April 2024, this rate was 3.87%, that is, this time it has also declined on an annual basis. 

The Labor Bureau under the Ministry of Labor releases AICPI-IW every month by collecting retail prices from 317 markets of 88 major industrial centers of the country.

The index of which things increased?

1. The commodities which witnessed an increase in the index in April 2025 are:
2. Food articles: up from 146.2 in March to 146.5 in April
3. Clothes and slippers: increased from 149.4 to 150.4
4. Fuel and light: up from 148.5 to 153.4
5. Betel nut, tobacco and narcotics: increased from 164.8 to 165.8

DA is decided on the basis of AICPI-IW-

The central government uses the AICPI-IW index to decide the rate of dearness allowance (DA) for employees and pensioners. This calculation is done based on the recommendations of the 7th Pay Commission. 

The increase in the index in March and April is expected to increase the DA (DA Hike). The government revises the DA twice a year, from January 1 and July 1, but the final decision rests with the government.