DA Increases: Dearness allowance of government employees will increase again, know when will it be announced?
DA Increases: From January 2025, DA was increased by 2% by the Central Government and now central employees and pensioners are waiting for the DA increase from July. It is being speculated that this time DA may increase from 55% to 58%.
DA Increases: The month of July has started and now 1 crore central employees and pensioners of the country are waiting for the dearness allowance hike in the festival season. From the data of the All India Consumer Price Index (AICPI) released by the Ministry of Labor, it is being estimated that this time DA may increase by 3 to 4 percent from July 2025.
After this, DA can increase from 55% to 58 or 59%. However, June figures are yet to come, which will be released on 30-31 July. After this it will be clear how much percentage dearness allowance will increase from July 2025.
Dearness allowance increases twice a year
The Central Government revises the rates of dearness allowance/dearness relief of central employees and pensioners twice every year in January and July in view of inflation, which depends on the half-yearly data of the All India Consumer Price Index. These figures are released between January to June and July to December.
The DA of employees and pensioners coming under the 7th Pay Commission was increased by 2% from January 2025, which was announced in March, after which DA has increased from 53% to 55% and now from July 2025, the rates of DA are to change again, which will depend on the half-yearly data from January to June. It is likely to be announced after Rakshabandhan.
Dearness allowance may increase by 3 or 4 percent
If we look at the data of AICPI index so far, AICPI INDEX was 143.2 in January 2025, AICPI-IW 142.8 in February, 143.0 in March, 143.5 in April and reached 144.0 with an increase of 0.5 points in May, making the DA score 57.85%, which is indicating 3%.
However, June figures are yet to come, which will be released on 30-31 July 2025, which will make it clear how much DA will increase from July 2025. If there is an increase of 0.5 points in June 2025 as well, then there can be an increase of up to 4%. Otherwise 3% is fixed.
It is expected to be announced around Diwali (October-November), because by the end of July, the AICPI IW index data for January to June will come. After this, the Labor Bureau will send its file to the Finance Ministry, from where the proposal will be placed in the cabinet meeting for approval. As soon as the green signal is received from here, orders will be issued by the Finance Ministry and benefits will start being received. The new rates will be applicable from July 2025, so getting arrears is also certain.
DA Calculation Formula
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 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 50% (ignoring decimal points).
News