7th pay commission da hike: After improvement in GST rate, now the central government employees are expected to get a ‘good news’ before the festive season. It is being told that the dearness allowance (DA) of central government employees is going to increase soon. The government can announce the DA hike before Diwali for the long -a -time employees and pensioners who have been waiting for the formation of the 8th Pay Commission. This step will provide great relief to more than 1.2 crore central government employees and pensioners. Employees are being estimated to get the benefit of increasing earnings before Dussehra and Diwali.

Three months arrears will also be available

The Central Government employees are expected to increase from DA 55 percent to 3 percent to 58 percent. Since this increase will be considered applicable from July 2025, the central government employees and pensioners will get the salary and pension of July, August and September by adding the arrears of three months. According to the information received, in the first week of October, a formal announcement of 3 percent DA hike can be made. The government will announce this at such a time, so that employees and pensioners can get some relief in the festive season.

The government amends the dearness allowance to give relief to its employees from increasing inflation-Dearness Allowance (DA) twice a year, which are implemented from 1 January and 1 July. Whereas its growth is announced twice a year-February-March and September-October. In view of inflation this year, there is a possibility of an increase of 3-4 percent in DA for central government employees in July 2025. This is expected to provide relief to employees from the effect of inflation.

How is calculation done?

DA hike for industrial workers is calculated on the basis of CPI-IW, which is issued every month. The government calculates the increase in dearness allowance by taking out the average of the CPI-IW data of the last 12 months and using a special formula under the Seventh Pay Commission. Understand this in this way- from July 2024 to July 2025, the CPI-IW average was 146.3. Based on this, the existing DA 55 percent to 3 percent will increase to 58 percent.

Da hike in July 2025: It is being said that a big gift can be given to government employees and pensioners before Rakshabandhan on behalf of the central government. The government can increase their dearness allowance – DA. The last time the central government had increased the DA by two percent in March this year, after which DA increased to 55 percent.

The government revise the dearness allowance at an interval of every six months, these are two months- January and July. After the approval of the Union Cabinet, this allowance is implemented. But, do you know on what basis the government decides to increase the DA of central personnel? Let us know about this in detail.

How is DA decided?

Actually, dearness allowance CPI-IW (Consumer Price Index for Industrial Workers) is based on the Consumer Price Index for industrial workers. This index is based on the prices of everyday things – like clothes, food items, fuel etc. Dearness allowance is made on a particular formula, which is based on the CPI (Consumer Price Index) issued by the Labor Bureau of the Ministry of Labor.

The government takes out its average by taking CPI-IW data for the last 12 months and then decides the DA from the formula of the Seventh Pay Commission. It can be understood that the CPI-IW average has been 143.3 in July 2025. That is, according to the current base year, the data that comes updated is calculated as expensive.

What is the calculation formula?
The government takes out its average by taking CPI-IW data for the last 12 months and then decides the DA from the formula of the Seventh Pay Commission.

DA (%) = [(AICPI – 115.76) ÷ 115.76] × 100

AICPI = 12 months CPI-IW average (based on 2016 base year = 100)
115.76 = This is Aadhaar average (CPI value of January 2016)

For example-

Suppose the average CPI-IW = 139.10 of 12 months is, then da = [(139.10 – 115.76) ÷ 115.76] × 100
= (23.34 ÷ 115.76) × 100
= 20.16%

That is, dearness allowance will be equal to about 20 percent.

How much can DA increase this time?

If the CPI-IW averaged by July 2025 is around 143.3, then the increase of 3 to 4 percent in DA is considered possible. In such a situation, DA can increase from 55% to 58-59%, which will be a relief news for millions of central employees and pensioners.

ALSO READ: First Indian Proctor & Gamble Company CEO, Shailesh Jejurikar gets a big responsibility