DA Salary Hike July 2025: Big news for 1.2 crore central employees, dearness allowance will increase by this much
DA Hike July: Big good news for 1.2 crore central employees of the country. Actually, it is now expected that the Dearness Allowance (DA) may increase by this percentage for July-December 2025... To know the complete information related to this update released by the government, read this news completely-
News, Digital Desk- (DA Hike 7th Pay Commission: Central employees and pensioners may get great news in July 2025. The 55% Dearness Allowance (DA) applicable from January 2025 can now increase by 2% to 3% to 57% or 58%. This will benefit about 1.2 crore people. The government mostly announces DA Hike in July before Diwali. It can be seen this time also that the government can announce increase in DA (Dearness Allowance) in October. (Employees Update)
What is DA?
Dearness Allowance (DA) is an additional payment made by the government to its employees and pensioners to mitigate the impact of rising inflation. It is usually increased twice a year—once in January and second time in July.
For January-June it is usually announced in March.
The announcement for July-December 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 for 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 tell us?
The CPI-IW index remained stable at 143.0 in March, indicating stability after the decline in the last few months. This is close to the figure of 143.2 in January.
The inflation rate in March was 2.95%, which is slightly higher than February. The index registered a slight increase due to inflation in food items remaining under control.
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%. This will depend on how the CPI-IW figures for April, May and June remain. If there is a slight increase in CPI-IW, then DA can be increased to 58%.
When will the 8th pay commission come?
The tenure of the 7th Pay Commission is ending on 31 December 2025. Earlier the recommendations of the 8th Pay Commission were expected to be implemented from 1 January 2026, but due to no clear indication from the government, it seems that the 8th Pay Commission will not be implemented on time.