DA Hike 2025: Dearness allowance of employees and pensioners will increase by this much in July! There will be a huge increase in salary

The All India Consumer Price Index for Industrial Workers of May 2025 released by the Labor Bureau has registered an increase of 0.5 points, in such a situation, an increase of up to 3 percent in Dearness Allowance is possible in July. Know the update on Next DA Hike…..

7th Pay Commission DA Hike 2025: There is good news for central employees and pensioners. After Rakshabandhan, you can get a gift once again. It is reported that after Rakshabandhan, the Modi government at the Center can increase the dearness allowance of central employees and pensioners by 3%, after which DA can increase from 55% to 58%.

This estimate has been made from the data of AICPI index released between January and May, although June figures are yet to come which will be released on 30 or 31 July. After this it will be clear how much DA / DR of central employees and pensioners will increase from July 2025?

What are the numbers from January to April indicating

How much dearness allowance will increase in July will depend on the half-yearly (January to June) data of the AICPI index. If we look at the data so far, the AICPI INDEX was 143.2 in January 2025, AICPI-IW 142.8 in February, 143.0 in March, 143.5 in April and with an increase of 0.5 points in May, the score has reached 144.0, due to which the DA score has crossed 58%, which is indicating towards 3%. However, the June figures are yet to be released by 31 July 2025, only after that it will be clear how much DA will increase from July 2025.

Will DA increase by 3% from July 2025?

If we look at the data of AICPI index from January to May 2025 by the Ministry of Labor, then 3% DA increase is considered certain in July, in such a situation, DA can increase from 55% to 58% with a 3% increase from July 2025. However, even if there is a decline in the June figure, there will be at least a 2% increase like January.

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 it will be 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 Rakshabandhan and Diwali, in such a situation, getting arrears is also certain.

Dearness allowance increases twice a year

The central government revises the rates of dearness allowance and relief of central employees and pensioners twice every year in view of inflation, which depends on the half-yearly data of the All India Consumer Price Index. This increase is done every year from January / July, which is announced around February March and September October. Last year in 2024, DA was increased by 7 percent (4% in January and 3% in July).

How is dearness allowance calculated?

There is a formula to calculate the 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 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. As per the formula, DA is coming to 50.28 per cent of the basic pay. Therefore, the central government can increase the dearness allowance by up to 50% (ignoring decimal points).

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