DA Hike: About 1 crore central government employees and pensioners are looking forward to a possible DA (dearness allowance) hike in July 2025. This will be the last DA hike of the 7th Pay Commission and its effect will be seen as credit in the salary in October. This is likely to lead to a significant increase in salary.
Last DA Hike under 7th Pay Commission: About 1 crore central government employees and pensioners are eagerly waiting for the last hike in Dearness Allowance. This will be the last DA revision under the 7th Pay Commission, which will end in December 2025. Although this allowance is considered to be applicable from July, it is usually paid in October. In such a situation, employees are expected to get special relief in salary this time, especially before the festive season.
How much was the dearness allowance increased last time?
The government had announced a 2% DA hike in March this year, which came into effect from January 2025. With this 2% increase, the DA of central employees and pensioners increased to 55% of the basic pay. Earlier DA was 53% of the basic pay.
This time there is a possibility of a 3% DA hike
The calculation of dearness allowance is based on the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau. From June 2024 to May 2025, the average AICPI-IW of the last 12 months has come to 143.3. By adding this to 261.42 of the 2001 base year, the possible increase in DA is calculated by the formula of the 7th Pay Commission.
According to the calculation: 412.70 – 261.42 / 261.42 x 100 = 0.578
That is, it is 57.8% or about 58%. This means that DA can increase from 50% to 58%. That is, the central government can increase DA by 3% this time because currently DA is 55%. According to this, if the basic salary of an employee is ₹ 25,000, then his DA will increase from ₹ 13,750 to approximately ₹ 14,500.
| Month | CPI-IW Index Value |
|---|---|
| June 2024 | 141.4 |
| July 2024 | 142.7 |
| August 2024 | 142.6 |
| September 2024 | 143.3 |
| October 2024 | 144.5 |
| November 2024 | 144.5 |
| December 2024 | 143.7 |
| January 2025 | 143.7 |
| February 2025 | 143.2 |
| March 2025 | 142.8 |
| April 2025 | 143 |
| May 2025 | 143.5 |
| June 2025 | 144 |
| औसत (Average over 12 months) | 143.3 |
What is the update regarding 8th Pay Commission?
The government has not yet issued the Terms of Reference (TOR) of the 8th Pay Commission, nor has its chairman or member been appointed. Experts believe that this process may take at least one and a half to two years. In such a situation, the 8th Pay Commission can be implemented in the beginning of next year 2026, which will be calculated from January 2026. Its direct effect will be that the employees will also get the arrears payment of that interval.
How much can the salary increase?
According to a report, if the current basic salary of an employee is Rs 50 thousand and DA is increased from the current 55% to 60%, then the salary can reach Rs 80 thousand. This shows that the salary of central employees can increase by 14% under the 8th Pay Commission.
Then the basic pay had increased by 2.57 times
When the recommendations of the 7th Pay Commission were implemented, the basic pay increased by 2.57 times. DA was reset to zero and then restarted. The same was done in the 6th Pay Commission. This time too, it is believed that after the 8th Pay Commission, DA will be reset and restarted.
Why is this considered the last DA hike?
The DA hike of July 2025 will be the last of the 7th Pay Commission as its deadline expires in December 2025. After this, employees may remain without CPI-IW based hike till the implementation of the 8th Pay Commission. This is the reason why this DA hike is considered very important.
Overall, the DA hike of July 2025 is not just a normal announcement but a sigh of relief for lakhs of employees and pensioners. While this hike will give relief to the pocket before the festive season, it will also make the wait for the 8th Pay Commission a little easier.
