Central Government Employees Set for Big DA Hike from July 2025—Here’s How Much Salary Will Increase

DA Hike Update: Central government employees are likely to receive some long-awaited good news soon. The government is expected to approve a significant increase in Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners, effective from July 2025. This hike could result in a notable rise in monthly salaries.

How Much DA Hike Can You Expect?

The hike in DA is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). The latest index data for May 2025 shows an increase of 0.5 points, bringing the index to 144. This marks a consistent upward trend, following March (143) and April (143.5), indicating a strong possibility of a DA hike.

As per estimates:

• A 3% increase would push DA from the current 55% to 58%.

• A 4% increase would raise it to 59%.

This decision will be finalized only after the release of June 2025’s AICPI-IW data, expected in early August. That figure will determine the exact percentage increase.

When Will the DA Hike Be Announced and Credited?

Once the June index is published, the Union Cabinet is expected to give the final nod. The official announcement could come in September or October 2025, but the hike will be retrospectively applicable from July 1, 2025. This means that employees will receive arrears for July and August along with the updated salary.

Will DA Continue to Increase Until the 8th Pay Commission?

Yes. Until the 8th Pay Commission is implemented, DA revisions will continue on a half-yearly basis. Historically, it takes around 18 to 24 months for a new Pay Commission’s recommendations to be implemented. Hence, the 8th Pay Commission is likely to roll out around 2027. Until then, employees can expect regular DA hikes every six months.Ask ChatGP