The Modi government may give a big gift to central employees before the Rakshabandhan festival. Along with the employees, pensioners may also get this benefit. Central employees and pensioners are waiting for the increase in dearness allowance (DA Hike News) for July 2025. Earlier, the government had increased the dearness allowance by 2 percent, from 53 percent to 55 percent. Now, once again, the government is preparing to increase it.

How much can the dearness allowance increase?

According to reports, the government may soon announce an increase in dearness allowance (DA Hike update) for July 2025. There is a possibility of a 3 percent increase. If the government announces this before Rakshabandhan, then employees and pensioners can start getting its benefits by October.

The government revises the dearness allowance twice a year, in January and July. The DA revision to be done in July will be the last revision under the Seventh Pay Commission because the 7th Pay Commission will end in December 2025.

No official statement has been given by the government about how much the DA will increase. But it is expected that the central government can give this gift to central employees before Rakshabandhan.

How is dearness allowance decided?

The All India Consumer Price Index (CPI) is used to revise the Dearness Allowance. The average CPI of the last 12 months is calculated. If the government increases the DA by 3 percent, it will rise from 55 percent to 58 percent.

How much does the increase in DA raise the salary?

DA is calculated on the basis of basic salary. For example, if the basic salary is Rs 10,000 and DA is 50 percent, then DA will be Rs 5,000. If it is increased by 3 percent, DA will become Rs 5,300. This means your salary will increase by Rs 300. Increasing DA in this way increases the salary.