Central government employees may get good news on salary this festive season. Reports say the government may announce a dearness allowance (DA) hike for July 2025 before Diwali. Experts expect a 3% increase in DA. At present, DA is 55% of the basic salary, and it will rise to 58% after the hike.
DA Hike for Central Staff
The government has not given any notice yet. Normally, DA hike is passed in September or October, but it counts from July.
This hike will help over 12 million staff and pensioners in India. It will give them more money to spend in festivals like Dussehra and Diwali.
The central government gives DA hike two times in a year. For January, it is told in Feb or March. For July, it is told in Sept or Oct. Both start from their month.
STORY | Odisha CM announces 2 pc DA hike for PSU staff, effective from Jan 1
Odisha Chief Minister Mohan Charan Majhi on Friday announced a 2 per cent hike in Dearness Allowance (DA) for employees of state-run Public Sector Undertakings (PSUs), an official statement said.
READ:… pic.twitter.com/HaJeBZkHcE
— Press Trust of India (@PTI_News) September 26, 2025
How DA is Fixed and Salary Rise
DA is fixed from CPI-IW (price index for workers). The rule of 7th Pay Commission is:
DA (%) = [(CPI-IW average of last 12 months – 261.42) ÷ 261.42] × 100.
If DA goes up by 3%, a staff with ₹18,000 basic pay will get ₹540 more. This will count from July 1, 2025, with arrears also paid.
CPI-IW comes every month from Labour Bureau. It shows how much price rise hits workers. DA changes with this.