The first month of the second half of the year 2025 has started, and with this, the discussion of increasing Dearness Allowance (DA) for Central Employees has also intensified. All the employees are waiting to know what percentage increase will be in their DA this time. The ever-increasing inflation and the latest data of AICPI (All India Consumer Price Index) have further strengthened the hope that soon some good news can be received from the government, especially before big festivals like Diwali.
Expectations increased with AICPI data
The latest report of the All India Consumer Price Index (AICPI) for Industrial Workers has strengthened the prospects of a DA hike. In May 2025, the index registered an increase of 0.5 points, taking it to 144 points.
Last month’s figures:
March 2025: 143 points
April 2025: 143.5 points
May 2025: 144 points
If there is an increase of 0.5 points in June 2025 as well, it is believed that an increase of up to 4% in DA is possible. This can become a big financial support for central employees.
How much can DA increase
If the Modi government increases DA by 4% from July 2025, the current 55% DA will increase to 59%. This can prove to be a big relief for the employees and a big gift in the form of a huge increase in salary at the time of festivals like Diwali.
Existing DA: 55%
Possible new DA: 59%
The gift will be received before Diwali
There has been no official announcement from the government yet, but it can be announced in September or October 2025. If the government makes this announcement before Diwali, the new DA can be implemented from July 1, 2025. Last time, the DA rates were implemented from January 1, 2025. This announcement will help the employees a lot in meeting their expenses during the festive season.
8th Pay Commission
The government has recently given in-principle approval for the 8th Pay Commission, but the committee has not been formed yet. It is expected that the committee will be formed by the end of August 2025. If everything goes on schedule, the 8th Pay Commission can be implemented by mid-2027. Under this, there is a possibility of major changes in the salary structure, allowances, and promotion system.