While state government employees did not get any hike, central government employees are happy. After a long wait, the Dearness Allowance (DA) hike for employees and pensioners has been announced. As per the latest AICPI data, DA will increase from 55% to 58% from July 1, 2025. More than one crore employees and pensioners in India wait for this DA hike news every festive season.
While state government employees did not get any hike, central government employees are happy. After a long wait, the Dearness Allowance (DA) hike for employees and pensioners has been announced.
According to the latest AICPI data, DA will increase from 55% to 58% from July 1, 2025. More than one crore employees and pensioners in India wait for this DA hike news every festive season.
Festive Gift for Employees
DA hike has a big effect on daily life – from children’s education to family budget and future plans. A 3% increase in this festive season will give relief to many families.
As per government sources, the formal announcement of the DA hike is expected in the Union Cabinet meeting in October. Since the hike is effective from July 1, employees will also get arrears for July, August, September, and maybe October if the announcement comes late.
7th Pay Commission Impact
The AICPI index number has gone up every month from January to June 2025. In June 2025, the index reached 145.0, which fixed DA at 58% (decimals are ignored).
- For example, if the basic salary is ₹18,000, the extra 3% DA means ₹540 more per month and ₹6,480 more in a year.
- For those in Level-1 with a basic salary of ₹56,900, the increase will be ₹1,707 per month and ₹20,484 in a year.
This 3% DA hike is not just a number, but a big financial relief for lakhs of families.