7th Pay Commission: There is good news for central government employees and pensioners. Right now the 8th pay commission is awaited, but before that another dearness allowance (DA) can get an increase. The government can increase DA from 3 to 4 percent from July 2025.
What is dearness allowance?
Dearness allowance means DA is the money that the government gives to its employees to give relief from the influence of inflation. As the prices of things increase, DA is also increased. This increase occurs twice a year. The first increase is done in January and the second is considered to be applicable from 1 July. The government should announce to increase DA anytime, but it is considered to be applicable from 1 January and 1 July. The government can announce the DA to be implemented from July 1 before Diwali.
How much can DA increase this time?
Right now employees are getting 53% DA of their basic salary. If there is an increase of 3%, it will be 56%. And if there is an increase of 4%, it can reach 57%. This decision is based on a figure of CPI-IW (Consumer Price Index for Industrial Workers), which measures inflation. The figures that have come up to May 2025 are indicated that there may be a DA hike of 3 to 4% in July.
What will be the effect on your salary?
If the basic salary of an employee is Rs 18,000, then he is getting 53% DA i.e. Rs 9,990. DA will be Rs 10,440 i.e. Rs 540 more when it increases 3%. Those who have high basic salary will give more benefit to them.
What will pensioners get?
Pensioners get DR (Dearness Relief) instead of DA, but it benefits the same. Meaning, if DA increases, Dr will increase equally.
When will the government announce?
The CPI-IW data of June 2025 will come in late July. After this, the Union Cabinet may decide to increase DA in September-October. Then this increased allowance will be given with arrears from July 2025. Until the 8th Pay Commission is implemented, this DA Hike is the means of giving relief to the employees from the government. So if you are an employee or pensioner of the central government, then this 3-4% DA hike coming in July 2025 will bring some more relief to your pocket.
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