DA Hike 2025 Update- Good news for central government employees. The government may soon give the benefit of Dearness Allowance (DA) and Dearness Relief (DR) hike to central government employees and pensioners. This may be the last DA hike under the 7th Pay Commission, as the government is planning to implement the 8th Pay Commission from January 1, 2026. Let us know when government employees can get the gift of DA hike and how much increase is likely to happen in it.
When will we get DA hike?
The government revises DA twice a year. First time in January and second time in July. The new rate will be applicable from July 1. But, usually it is announced in September or October. Employees get arrears for July, August and September. Government employees will hope that the government will announce DA hike in September before the festive season. This time Diwali is on 20 October. In such a situation, the government can give a Diwali gift to government employees and pensioners by adding arrears to the September salary.
How is DA decided
DA is calculated based on the Consumer Price Index (CPI-IW) of Industrial Workers. The Labor Bureau releases this data every month. The government decides DA under the 7th Pay Commission formula using the average CPI-IW of the last 12 months.
Currently DA is 55%. According to media reports, it is likely to increase by 3% to 4%. If the government approves an increase of 3%–4%, then DA can reach 58%–59%.
How much will it benefit?
If DA increases by 3%, the monthly income of an entry-level employee with a basic salary of Rs 18,000 will increase by about Rs 540. Similarly, pensioners with a basic pension of Rs 9,000 will get a benefit of Rs 270. However, it will completely depend on the government how much DA increases. The cabinet can take a final decision on this in September–October.