Da hike:A big news has come out for central government employees and pensioners. There is a possibility of an increase in dearness allowance in July 2025, which is a relief for crores of employees and pensioners. The latest data of the All India Consumer Price Index (AICPI) has further strengthened this hope. Let us know how much dearness allowance and employees will benefit from how much can increase this time under the 7th Pay Commission.

7th Pay Commission’s last stop

The 7th Pay Commission is going to end on 31 December 2025. Earlier, the central government is preparing to make a last amendment in DA Hike. This amendment will provide increased salary and pension benefits to central employees and pensioners. Currently dearness allowance is 55%, which came into force after an increase of 2% at the beginning of this year. Now the employees are expecting an increase of 3% or more this time.

AICPI data increased expectations

Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI). In March 2025, AICPI was at 143.0, with an increase of 0.2 points. At the same time, in April 2025 it reached 143.5 with an increase of 0.5 points. If the figures of May and June 2025 are also positive, Dearness Allowance can reach 57.95% in July 2025. Employees are hoping that this figure can go up to 58%, which will bring a big change in their income.

New DA will be implemented from July 2025

The new dearness allowance for crores of employees and pensioners of the central government will be applicable from July 2025. However, its official announcement may be held in October or November 2025. The declaration of DA is usually delayed, but employees get the benefit as arrears. This increase will strengthen the financial position of the employees and Ored under inflation

What will be the benefit for employees and pensioners?

The increase in dearness allowance will increase the salary of central employees and pension of pensioners. For example, if the basic salary of an employee is Rs 50,000 and DA increases from 55% to 58%, their monthly income may increase by Rs 1,500. This increase will be a big relief for employees in the era of inflation. Also, additional amount received as arrears will provide financial security to employees.