DA Increase: Good news! Dearness allowance of employees and pensioners may increase by this much in July, there will be a significant increase in salary

DA Increase: The AICPI data from January to June will decide how much DA will increase from July 2025. After this, the Finance Ministry will prepare a proposal which is expected to be approved in the cabinet meeting to be held around Diwali. As soon as the DA increases, once again there will be a jump in the salary pension of employees and pensioners.

7th Pay Commission: There is good news for central employees and pensioners. After the increase in dearness allowance by 2% from January 2025, there is a possibility that there may be a 3% increase in DA from July 2025. This estimate has been made from the AICPI data from January to April released by the Ministry of Labor, although the figures for May June 2025 are yet to come.

Actually, 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. In March, DA was increased by 2% from January 2025 and now the next DA is to be increased from July 2025, which is expected to be announced after Rakshabandhan.

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 with an increase of 0.5 points in April, making the DA score 57.95% which is indicating 2 to 3%.

However, the May June figures are yet to come which will be released by 30 June and 31 July, only after this it will be clear how much DA will increase from July 2025. If there is an increase in the May June figures as well, then a 3% DA increase in July (from 55% to 58%) is considered certain.

If there is a decline, then like January, an increase in DA by up to 2% (from 55% to 57%) can be seen. 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, getting arrears is certain.

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Know how dearness allowance is calculated?

There is a formula to calculate 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 7th Pay Commission. DA%= (392.83-261.42)/261.42×100 = 50.26

The average CPI-IW for the last 12 months is 392.83. According to the formula, DA is coming to 50.28 per cent of the basic salary. Therefore, the central government can increase the dearness allowance by up to 50% (ignoring decimal points).

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The post DA Increase: Good news! Dearness allowance of employees and pensioners may increase by this much in July, there will be a significant increase in salary first appeared on informalnewz.

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