By Admin 
Da hike in July 2025: Central government employees and pensioners can get Goodnues before Rakshabandhan. They can get at least one more DA (Dearness Allowance) under the current seventh pay commission.
In view of the latest data of inflation, the dearness allowance of central government employees is likely to increase by 3 to 4 percent in July 2025. This will provide relief to crores of central government employees of the country.
An announcement is made twice a year
The increase in dearness allowance is usually announced twice a year in February-March and September-October, which is implemented from January and July respectively. This helps the employees to struggle with rising inflation. In March this year, the current DA rate with 2 percent hike is 55 percent. DA is given to government employees, while DR pensioners get.
How is the calculation of DA?
Calculation of dearness allowance is done for laborers based on All India Consumer Price Index for Industrial Workers (AICPI-IW). The AICPI-IW index is released on the basis of retail prices raised from 317 markets of 88 industrial centers in the country.
Its information is given by the Labor Bureau associated with the Ministry of Labor and Employment every month that how much inflation has increased or reduced for the laborers and then on the basis of this, it is decided how much dearness allowance is to be increased.
In March 2025, the meter of inflation was at AICPI-IW 143, which increased to 144 by May. According to this, there can be an increase of three to four percent in dearness allowance. The government calculates DA on the basis of the average of the CPI-IW data of the last 12 months and the formula mentioned under the 7th Pay Commission.
Dearness allowance (%) = [(12-महीने का औसत CPI-IW – 261.42) ÷ 261.42] × 100
Here is the time base assumed under the 261.42 Seventh Pay Commission.
CPI-A and CPI-RL fall in both
However, the CPI-IW data for May 2025 has not yet been fully released, yet it is being broadly estimated by the new trend of inflation. According to the Ministry of Labor, retail inflation for agriculture and rural workers declined to 2.84 percent and 2.97 percent respectively in May 2025, which is more than 3.5 % in April. Both CPI-A and CPI-RL have reduced marginally to 1305 and 1319 points, which shows a decline in rural inflation.
Although the CPI-Al and CPI-Rl are not directly used for calculations of dearness allowances, they indicate widespread inflation trends that may also appear in CPI-IW. If the CPI-IW remains stable in the coming months or increases marginally, the government can approve the increase of 3-4 percent in dearness allowance, which will make the dearness allowance 58 % or 59 percent. The final hike will be detected only after the release of the CPI-IW data of June 2025.
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