DA Hike 2025: Dearness allowance of employees may increase by this much percentage, know how much the salary will increase?

After Rakshabandhan, central employees and pensioners may get good news. After the increase in dearness allowance by 2% from January 2025, there is a possibility that DA may increase by 3% from July 2025. Let us know what the AICPI figures are pointing towards……..

DA Hike 2025: The Central Government revises the rates of dearness allowance and relief of employees and pensioners twice every year in view of inflation, which is announced around Holi and Diwali. DA was increased by 2% 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 figures for May and June 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 with an increase of 0.5 points in April, 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, getting arrears is certain.

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 of the last 12 months is 392.83. As per 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).

The post DA Hike 2025: Dearness allowance of employees may increase by this much percentage, know how much the salary will increase? first appeared on informalnewz.

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