Da hike july 2025: Lakhs of employees and pensioners of the central government are waiting for a possible increase in dearness allowance and dearness relief. This increase occurs twice a year. The first time the beginning of the year i.e. in January and the second in the middle of July. Employees and pensioners have received the DA/Dr Hike of January. Now he is waiting for the July hike.
This may increase the last DA/Dr under the 7th Pay Commission. Because from 2026, the government is preparing to implement the 8th Pay Commission. Let us know how much this DA/Dr can increase and when will it be announced.
AICPI-IW rose to 144 in May
All India Consumer Price Index for Industrial Workers (AICPI-IW) is the most important index to increase dearness allowance. According to data from the Labor Bureau, AICPI-IW reached 144 in May 2025 with an increase of 0.5 points. Earlier it was 143 in March, 143.5 in April. This is the third consecutive month when this index has gone up. The higher this indicator, the more scope for increase in DA/Dr.
How much can DA/Dr?
In view of the current trend, there is a possibility of an increase of 3% in DA/Dr from July. If the government’s approval of 3% increase, DA/Dr of central employees and pensioners can increase from the current 55% to 58%. However, the final decision is to be taken by the Central Government and its official announcement is yet to be done.
When will DA Hike be announced?
Even though the new DA rates will be considered effective from July 1, it is traditionally announced in September or October just before the festival season. In such a situation, employees and pensioners may have to wait for a few weeks. When it is announced, the arrears of increase in the salary of that month come from July.
How is DA Hike fixed?
The DA is calculated according to the recommendations of the 7th Pay Commission, based on the average AICPI-IW data of the last six months. It is an allowance to balance the impact of inflation in salary and pension.
Last amendment before the next increase?
Experts believe that this increase may be the final increase before the implementation of the 8th Pay Commission. At present, the government has not notified the Terms of Reference of the 8th Pay Commission, but preparations are going on in that direction.
Also read: 8th Pay Commission: Will the 8th Pay Commission be delayed, when will the increased salary and pension be increased?