DA Hike: Dearness allowance will increase by 4% in July! Salary will increase by this much

7th Pay Commission: There is good news for central government employees and pensioners. The 8th Pay Commission is still awaited, but before that there may be another increase in dearness allowance (DA). The government can increase DA by 3 to 4 percent from July 2025

7th Pay Commission: There is good news for central government employees and pensioners. The 8th Pay Commission is still awaited, but before that another increase in dearness allowance (DA) can be received. The government can increase DA by 3 to 4 percent from July 2025.

What is dearness allowance?

Dearness allowance i.e. DA is the money that the government gives to its employees to give relief from the effects of inflation. As the prices of things increase, DA is also increased. This increase happens twice a year. The first increase is done in January and the second is considered effective from July 1. The government may announce an increase in DA anytime, but it is considered effective from January 1 and July 1. The government can announce the DA to be implemented from July 1 before Diwali.

How much can DA increase this time?

At present, employees are getting 53% DA of their basic salary. If there is an increase of 3%, it will become 56%. And if there is an increase of 4%, it can reach 57%. This decision is based on a data of CPI-IW (Consumer Price Index for Industrial Workers), which measures inflation. The figures that have come till May 2025 indicate that there may be a DA hike of 3 to 4% in July.

What will be the impact on your salary?

If the basic salary of an employee is Rs 18,000, then he is currently getting 53% DA i.e. Rs 9,990. With a 3% increase, DA will become Rs 10,440 i.e. Rs 540 more. Those who have a higher basic salary, this increase will benefit them more.

What will pensioners get?

Pensioners get DR (Dearness Relief) instead of DA, but its benefit is the same. Meaning, if DA increases, DR will also increase by the same amount.

When will the government make the announcement?

The CPI-IW data for June 2025 will come at the end of July. After this, the Union Cabinet may take a decision to increase DA in September-October. Then this increased allowance will be given with arrears from July 2025. Till the 8th Pay Commission is not implemented, this DA hike is the only way to provide relief to the employees from the government. So if you are a central government employee or pensioner, then this 3-4% DA hike coming in July 2025 will bring some more relief to your pocket.

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