7th Pay Commission- Big news for central government employees. Before the formation of the Eighth Pay Commission, there may be another increase in the Dearness Allowance (DA) of central government employees under the Seventh Pay Commission. According to media reports, the latest inflation trends suggest that the next DA hike effective from July 2025 may be around 3 per cent to 4 per cent. However, there has been no official announcement in this regard.
After a 2 per cent hike in March, the DA rate is currently 55 per cent. DA helps employees deal with rising prices. Pensioners also get a similar benefit called Dearness Relief (DR). Dearness allowance changes twice a year The government changes the dearness allowance twice a year, once in February-March (effective from January) and then in September-October (effective from July). Although the next hike comes into effect from July 1, the Center usually announces it in September or October.
After this, employees get the arrears for July, August and September. Officials calculate dearness allowance using the Consumer Price Index for Industrial Workers (CPI-IW). The Labor Bureau releases this figure every month. How much will be the benefit of DA increase If the government increases dearness allowance by 3 per cent, an entry-level employee with a basic salary of Rs 18,000 per month can get an increase of about Rs 540 per month.
The final figure will be clear after the CPI-IW for June is released by the end of July. After this, the Union Cabinet will take a decision on this in September-October.