Relief news is once again coming out for the central government employees and pensioners. It has now increased to 55% after a 2% increase in dearness allowance – DA. This change has come into force for the period of January-June 2025, but it was the lowest increase in the last 78 months. Now 1.2 crore employees and pensioners are eagerly waiting for the next Da Hike to be held in July 2025. Let us understand this news in detail and know what changes can be seen in the coming months.
Dearness (DA) and Dearness Relief – Dr is an important financial support for central government employees and pensioners. This allowance is given to reduce the effect of inflation, so that their shopping ability is maintained amid rising prices. Every year in January and July, the Central Government amends DA based on All India Consumer Price Index for Industrial Workers (CPI-IW). This index is released by Labor Bureau under the Ministry of Labor.
However, the 2% increase in January 2025 disappointed many employees, as it was less than their expectations. Now everyone’s eye is on the DA Hike to be held for July-December 2025, which will be a final increase under the 7th Pay Commission. Experts believe that 8th Pay Commission may be applicable from January 2026, but its recommendations will take time to apply.
The CPI-IW data released by Labor Bureau in March 2025 has raised new hope among the employees. During this period the index rose 0.2 points to 143.0. This is slightly lower than 143.2 in January 2025, but this is a positive sign after a continuous decline after November 2024.
