7th Pay Commission: Central Employees Likely to See DA Hike to 58% from July 2025 — Check Expected Salary Increase

Good news is on the horizon for central government employees and pensioners across the country! After the 2% increase in Dearness Allowance (DA) implemented in January 2025, strong indications now point to another hike — potentially up to 3% — expected in July 2025.

This projection comes from the latest AICPI (All India Consumer Price Index for Industrial Workers) data, released by the Ministry of Labour. The official announcement will follow once May and June 2025 figures are finalized.

DA Revision — When to Expect the Next Announcement

The central government revises DA and Dearness Relief (DR) rates twice a year to counter inflation — typically announced around Holi (March) and Diwali (October/November).

In March 2025, the government raised DA by 2% effective from January 2025. Now, the next revision — effective July 2025 — is expected to be officially announced after Raksha Bandhan, likely during the Modi Cabinet’s Diwali session.

How Much Will DA Increase? 2% or 3%?

Here’s what the latest AICPI index figures suggest:

Based on current numbers, the DA percentage has already reached 57.95%, indicating an upcoming hike of 2% to 3%. The May and June 2025 CPI-IW data (to be released by June 30 and July 31, respectively) will ultimately determine the final rate:

• If the index rises in May-June → DA is likely to go up by 3% (from 55% to 58%).

• If the index drops or remains flat → DA could increase by 2% (from 55% to 57%), similar to the January 2025 hike.

Expected Impact on Salary — How Much More Will You Get?

Here’s an example of how a potential DA hike will affect monthly salary:

If a 3% DA hike is approved, employees and pensioners will enjoy a significant boost in monthly income — plus arrears for a few months from July 2025.

How is DA Calculated?

The government calculates DA for central employees using a fixed formula based on the 7th Pay Commission:

DA (%) = [{12-month average AICPI-IW (base year 2001=100) – 261.42} ÷ 261.42] × 100

For example:

• If the 12-month average CPI-IW is 392.83, DA comes to 50.28%. In such cases, DA is rounded to the nearest whole percentage (e.g., 50%).

Final Word

While the final decision is pending official approval, all signs suggest central employees and pensioners could see a DA hike to 58% starting July 2025 — boosting take-home pay during the festive season.

Stay tuned for the final announcement from the Modi government after July 31, 2025.

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Kuldeep Singh Chundawat

My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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