DA Hike– Big news for central government employees. Right now Central government employees and pensioners are eagerly awaiting the next dearness allowance (DA) hike for the July-December period. To provide relief from rising inflation, DA is revised twice a year based on All India Consumer Price Index (AICPI) data. Typically, hikes are announced around Holi for the January-June period and around Diwali for the July-December cycle.
Final DA revision under 7th Pay Commission?
The Seventh Pay Commission will complete its 10-year term on December 31, 2025, meaning the next DA revision for central employees will be the last under the current Pay Commission. But does this mean that there will be no DA revision for government employees until the next Pay Commission is implemented? No, DA hikes will be announced twice a year, as is currently the case. Once the recommendations of the next Pay Commission are implemented, the DA will be merged into the employees’ basic pay at that time.
When can government employees expect a DA hike?
The AICPI-IW data from July to December 2025 will play a key role in this. According to our partner Financial Express, experts believe the government may announce the new DA next month, possibly in the second week. Past trends show that the government typically makes such announcements around Diwali, which falls on October 20-21 this year.
Considering this, the DA hike may be announced in the second week of October. This will ensure that employees and pensioners receive the benefits of the revised salary and pension before Diwali. The DA UE for July-December 2024 was announced on October 16, and Diwali fell on the 29th of that month.
How much can the increase be?
A 3% increase in DA is expected next month. This will bring the total DA for central employees to 58% of their basic pay. Central employees received only a 2% increase in their dearness allowance for January-June 2025, reaching 55%, the lowest increase in the last six years. If an employee’s basic pay is Rs 30,000, their DA will increase by Rs 900 per month. Thus, the total dearness allowance will increase from the current Rs 16,500 to Rs 17,400. Pensioners will also benefit proportionately.