7th Pay Commission DA hike: This is going to be the last hike in dearness allowance (DA) for government employees under the 7th Pay Commission. Because after this the recommendations of the 8th Pay Commission are likely to be implemented. The government has often increased DA before Diwali and this time it may be announced during Navratri. It is expected that the hike may be announced in September next month.
How much DA hike is expected?
The Dearness Allowance (DA) of government employees is likely to increase under the 7th Pay Commission in September next month. There is a possibility that the Dearness Allowance (DA) will increase by 3 to 4% in July 2025, which can take the total DA to 58% or 59%. The government increases DA twice a year. The announcement is made in February-March for January and in September-October for July. Employees are paid with arrears.
When will DA be implemented?
Whenever the government announces DA, it will be considered effective from July 1, 2025. There is a possibility that DA may increase by 3 to 4%, taking the total DA to 58% or 59%. The government increases DA twice every year. In February-March for January and in September-October for July.
Method of DA calculation
DA is calculated based on the Consumer Price Index (CPI-IW), which is released by the Labour Ministry every month.
Formula for DA hike in 7th Pay Commission
DA (%) = [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100, where 261.42 is the base CPI-IW.
The complete average of CPI-IW is not out till May 2025, but CPI for agricultural and rural workers has seen a decline. The final announcement will be made after the CPI-IW data comes out at the end of July and after getting cabinet approval in September-October. The benefit will be available with arrears from July 1, 2025.