DA Hike- Big news for central government employees. About one crore central employees and pensioners across the country are eagerly waiting for the increase in dearness allowance and dearness relief (DA, DR) in July 2025. This dearness allowance will be implemented from July, but often it is announced a little late and this money comes in the accounts of the employees around October.
When the festive season starts. That is, in a way, the increased salary is given to the government employees as a festive gift. The special thing is also that this increase in July 2025 will be the last hike of DA under the 7th Pay Commission.
How much was the increase in DA last time?
The government had last increased DA by 2% in March 2025. This increase was considered effective from January 2025. At that time DA increased from 53% to 55%. This dearness allowance is an important part of the salary of Central Government Employees as it helps in balancing the effect of inflation.
How much can DA increase in July 2025
DA is calculated on the basis of ‘Consumer Price Index for Industrial Workers’ (CPI-IW). These figures are released every month by the Labor Bureau under the Ministry of Labor. In this, it is seen how much the prices of things used in everyday life have increased.
For calculating DA for July 2025, the average CPI-IW of the last 12 months (June 2024 to May 2025) has been taken, which is 143.3. To convert this figure according to the old base year (2001=100), it is multiplied by 2.88. Accordingly, the new CPI-IW after calculation is coming to 412.70.
Now if the percentage of DA is calculated as per the formula fixed by the government, then: (412.70 – 261.42) ÷ 261.42 × 100 = 57.8%. That is, the new DA can be around 58%. This means that in July 2025, the government can increase the dearness allowance (DA) from 55% to 58%, which means an increase of 3% in DA.
How much will this increase affect the salary
Suppose the basic salary of an employee is Rs 25,000, then at present he is getting 55% DA i.e. Rs 13,750 as dearness allowance. If DA becomes 58% then this amount will increase to about Rs 14,500. In this way, the salary can increase by Rs 750.
