DA Hike 2025: Good news for employees and pensioners! Dearness allowance may increase by 3% in July, know the new update on DA Hike

How much the dearness allowance will increase in July 2025 will depend on the CPI-IW index data from January to June released by the Ministry of Labor. So far, the figures for the months of January, February, March and April have come out.

7th Pay DA Hike 2025: Important news for central employees and pensioners. The Ministry of Labor has released the AICPI index figures for April. There has been an increase of 0.5 points in April, after which the figure has reached 143.5, in such a situation, there is a possibility of 3% DA increase in July. However, the figures for May June are yet to come, after which the picture will be clear, how much DA will increase in July 2025.

Actually, the central government revises the rates of dearness allowance and relief of employees and pensioners twice a year. This revision is done in January / July, which depends on the half-yearly (January to June / July to December) data of the AICPI index. These figures are released on the 30th or 31st of every month. So far the figures from January to April have come out and now the figures for May June are awaited.

Eye on January to April figures, April figures will come on 30 May

How much dearness allowance will increase in July 2025 will depend on the CPI-IW index data from January to June released by the Ministry of Labor. So far, figures for January, February, March and April have come out. In January 2025, the AICPI INDEX was 143.2, but in February AICPI-IW fell by 0.4 points to 142.8, although in March it has returned to 143.0 with a gain of 2 points and now in April it has come to 143.5 with an increase of 0.5 points, due to which the DA score has increased to more than 57%, in such a situation, DA is considered to increase by 3 percent in July.

Will DA increase from 55% to 57% or 58%?

If there is a jump in AICPI points in May-June 2025 like April and the DA score crosses 58%, then 3% can be expected, but if there is a decline in the points, then like in January, DA can be seen to increase by 2%. On increasing by 2%, DA is expected to increase from 55% to 57 from July 2025 and on increasing by 3%, it is expected to reach 58%. However, it is yet to be officially confirmed as to how much DA will increase in July. For example, if the basic salary of an employee is Rs 18,000, then on 57% DA, it will be Rs 10,260 and on 58% DA, it will be Rs 10,440.

How is dearness allowance 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 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 up to 50% (ignoring decimal points).

The post DA Hike 2025: Good news for employees and pensioners! Dearness allowance may increase by 3% in July, know the new update on DA Hike first appeared on informalnewz.

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