DA Hike: From July 2025, the dearness allowance (DA) of central employees may increase by 4%, taking the total DA to 59%. The possibility of this has been strengthened by the steady increase in AICPI figures. The government may announce it before Diwali. The 8th Pay Commission is also in process.

DA Hike: The first month of the second half of the year 2025 has started, and with this, the discussion of dearness allowance (DA) hike for central employees has also intensified. All the employees are eyeing how much their DA will increase this time.

Expectations increased from AICPI figures.

The latest report of the All India Consumer Price Index (AICPI) for industrial workers has strengthened the possibilities of a DA hike. In May 2025, the index registered an increase of 0.5 points, taking it to 144 points.

March 2025: 143

April 2025: 143.5

May 2025: 144

If there is an increase of 0.5 points in June 2025, then it is believed that an increase of up to 4% in DA is possible.

How much can DA increase?

If the Modi government increases it by 4% from July 2025, then the current 55% DA will increase to 59%. This can prove to be a big relief for the employees and a gift, like a huge increase in salary at the time of festivals like Diwali.

When can the announcement be made?

There has been no official announcement from the government yet, but it can be announced in September or October 2025. If the government makes this announcement before Diwali, then the new DA can be implemented from July 1, 2025. Last time, the DA rates were implemented from January 1, 2025.

8th Pay Commission: Is the delay in implementation certain?

The government has recently given in-principle approval for the 8th Pay Commission, but the committee has not been formed yet. It is expected that the committee will be formed by the end of August 2025. If everything goes on schedule, the 8th Pay Commission can be implemented by mid-2027.

Under this, major changes are likely to happen in the salary structure, allowances and promotion system. Overall, the second half of 2025 can bring both relief and hope for central employees. If the government increases DA by 4%, it will give direct benefits in both salary and pension and will be a big relief for expenses during the festive season.

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