DA Hike July 2025: Dearness Allowance of central employees increased by 58%, will get Rs 10260
DA Hike July 2025: If you are an employee then this news is for you. Actually, according to a recent report, let us tell you that the dearness allowance of central employees will be 58 percent. Under which the employees will get Rs 10260... To know the complete information related to this update, read this news completely-
News, Digital Desk- ( DA Hike 2025) The central government revises the rates of dearness allowance (DA) and dearness relief (DR) of employees and pensioners twice a year, in January and July. This revision depends on the last six months' data of the AICPI index. These figures are released on the 30th or 31st of every month.
From January 2025, the dearness allowance of central employees and pensioners has been increased by two percent, after which the rate has reached 55 percent.
Now the next DA is to be increased from July 2025, which will depend on the CPI-IW index data from January to June released by the Ministry of Labor. Let's know the updates so far-
Will DA increase by 3% in July 2025?
- Dearness Allowance (DA) in July 2025 will depend on the CPI-IW data from January to June released by the Ministry of Labor. The figures for January, February and March have come.
The AICPI INDEX was 143.2 in January 2025, which fell by 0.4 points to 142.8 in February. In March, it increased by 2 points to 143.0, making the DA score 57.06%. The final rate of DA increase from July 2025 will be decided only after the figures for April, May and June are released.
- If there is a jump in AICPI points in the next 3 months and DA score crosses 58% then 3% can be expected, however if there is a drop in the points then DA may see an increase of up to 2% like in January.
- After this, DA is expected to increase from 55% to 57 or 58% in July 2025. However, official confirmation is yet to be done. For example, if the basic salary of an employee is Rs 18,000, then at 57 percent dearness allowance, it will be Rs 10,260 and at 58% DA (DA Hike), it will be Rs 10,440.
How is dearness allowance calculated?
There is a formula to calculate the dearness allowance of central government employees and pensioners. The formula is: 7th CPC DA% = [{12-month average of AICPI-IW (base year 2001=100) for the last 12 months – 261.42}/261.42×100]
This formula will be applicable to those central government employees and pensioners who get salary based on the recommendations of the Seventh Pay Commission. DA%= (392.83-261.42)/261.42×100 = 50.26
The average CPI-IW of the last 12 months is 392.83. According to the formula, DA is coming to 50.28 percent of the basic salary. Therefore, the central government can increase the dearness allowance by 50%.