DA Hike 2025: Good news could be on the way for Central Government employees and pensioners! The government typically revises the Dearness Allowance (DA) and Dearness Relief (DR) twice a year to help offset the impact of inflation — with increases generally announced around Holi and Diwali.
Earlier this year, the government had hiked DA by 2% for January 2025, with the announcement made in March. Now, employees are eagerly awaiting the next revision, which is expected to be announced after Rakshabandhan, covering the period from July 2025.
Here’s what you can expect based on the current data trends.
How Much Will DA Increase?
As of now, the AICPI Index (All India Consumer Price Index – Industrial Workers) trends indicate a likely 2% to 3% increase in DA this time around, though the final decision depends on the upcoming data for May and June 2025.
Here’s the recent AICPI-IW trend:
January 2025: 143.2
February 2025: 142.8
March 2025: 143.0
April 2025: 143.5 (+0.5 points increase)
With these numbers, the current DA score stands at 57.95%, which hints toward a 2% to 3% DA hike.
Key Dates to Watch:
May figures release: June 30, 2025
June figures release: July 31, 2025
Only after these releases will there be clarity on the exact percentage of the DA hike.
2% or 3% — What Will Employees Gain?
If the final hike is 3% (from 55% to 58%):
Employees with a basic salary of ₹18,000 will get an additional benefit of ₹10,440 annually.
If the hike is 2% (from 55% to 57%):
The same employees would receive a benefit of approximately ₹10,260 annually.
The new DA rates will be effective from July 2025 and are expected to be formally approved in a Modi cabinet meeting, likely scheduled close to Diwali — after which the arrears will also be released.
How is DA Calculated?
The Dearness Allowance is calculated using this formula (for 7th Pay Commission):
DA (%) = [(12-month average of AICPI-IW (base year 2001=100) – 261.42) / 261.42] × 100
For example:
DA (%) = (392.83 – 261.42) / 261.42 × 100 = 50.26%
This formula is applicable to Central Government employees and pensioners who are drawing salaries as per the Seventh Pay Commission.
Final Word
While an official confirmation is still awaited, the signs point toward another welcome DA hike — offering some relief amid rising living costs. For now, all eyes are on the upcoming AICPI data releases for May and June, which will determine whether employees will see a 2% or 3% increase in their DA this July.
Stay tuned — we’ll bring you the latest updates as soon as they’re announced!
Author Profile
- 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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