DA Hike: How much will the DA of central employees increase in July? CPI-IW gave good indications!

DA Hike in July 2025: The Labour Bureau under the Labour Ministry has released the All India Consumer Price Index for Industrial Workers (CPI-IW) data for March 2025, which has increased the possibility of DA hike.

7th Pay Commission: Central employees and pensioners eagerly wait for the month of July. This month the government increases the dearness allowance. Its benefit is from small employees to big officials. Actually, the central government increases the dearness allowance of its employees twice a year. First in January and second in July. The last time the dearness allowance was increased by 2 percent, which is the lowest in the last 78 months. In such a situation, the eyes of the employees and pensioners are fixed on the increase to be implemented from July.

How much can DA increase?

At present, the DA of central employees is 55 percent. But this minor increase has disappointed more than 1.2 crore personnel and pensioners. At the same time, the Seventh Pay Commission is ending on 31 December 2025. In such a situation, it is expected that the government can increase it by 3 to 4 percent in July. However, there is no official confirmation of this.

CPI-IW data raised hopes

In fact, the Labor Bureau under the Labor Ministry has released the All India Consumer Price Index for Industrial Workers (CPI-IW) data for March 2025, which has increased the possibility of DA hike. In March, the CPI-IW index rose by 0.2 points to 143.0. This is slightly less than January’s 143.2, but still a good sign. There was a steady decline in CPI-IW from November 2024 to February 2025, but a slight increase in March has given relief to employees and pensioners.

Let us tell you that the annual inflation rate in March was 2.95 percent. The most important thing is that there has been a decline in food items. Hence there has been a slight jump in the CPI-IW index. This figure can play an important role in the inflation increase in July 2025. May prove to be.

What is the method of DA hike?

It is worth noting that under the 7th Pay Commission, Dearness Allowance (DA) and Dearness Relief (DR) are calculated on the average of 12 months’ CPI-IW data. Dearness Allowance (DA) is given to reduce the impact of inflation. Usually the first DA hike of the year is done in March, which comes into effect from January 1, while the second hike takes place in October or November, which comes into effect from July 1.

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