DA Hike Update – Big news for central government employees. The first month of the second half of the year 2025 has started and with this the discussion of dearness allowance (DA) hike for central employees has also intensified. All the employees are keeping an eye on how much percentage their DA will increase this time.
Expectations increased from AICPI data
The latest report of the All India Consumer Price Index (AICPI) for industrial workers has strengthened the prospects of DA hike. The index has registered an increase of 0.5 points in May 2025, taking it to 144 points.
If there is an increase of 0.5 points in June 2025 also, then it is believed that an increase of up to 4% in DA is possible.
How much can DA increase?
If the Modi government increases 4% from July 2025, then the current DA of 55% will increase to 59%. This can prove to be a big relief for the employees and a gift like a huge increase in salary during festivals like Diwali.
When can the announcement be made?
There has been no official announcement from the government yet, but it may be announced in September or October 2025. If the government makes this announcement before Diwali, then the new DA can be implemented from July 1, 2025. Last time also the DA rates were implemented from January 1, 2025.
8th Pay Commission: Delay in implementation confirmed?
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 may be implemented by mid-2027.
Under this, there is a possibility of major changes in the salary structure, allowances and promotion system. Overall, the second half of 2025 can bring both relief and hope for central employees. If the government increases DA by 4%, it will give direct benefits in both salary and pension and will be a big relief for expenses during the festive season.