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7th Pay Commission: AICPI data from January to April is showing that there can be an increase of up to 3% in Dearness Allowance (DA) in July 2025. With this, DA can cross 58%. The data of the coming month will further strengthen this estimate.

7th Pay Commission: Good news has come regarding dearness allowance for central employees and pensioners. July 2025 can bring big relief. According to AICPI (All India Consumer Price Index) data from January to May 2025, Dearness Allowance (DA Hike) has reached 57.85%. In such a situation, in the coming days, once again a big jump can be seen in the Dearness Allowance of the employees. Looking at the numbers of the current index, it is almost certain that there can be a jump of up to 3 percent in the dearness allowance. The data for the month of June is yet to come. Under the 7th Pay Commission, employees will get a direct increase of 3% in DA, which will take it to 58%.

AICPI index rises

The numbers from the AICPI index decide how much the dearness allowance can increase. Based on the numbers between January and June 2025, it will be decided how much dearness allowance the employees will get from July 2025. So far, the numbers for January, February, March, April and May have come. The latest data of AICPI has been released for May, in which a good increase has been seen in the index. The index has increased by 0.5 points as compared to April. Now it has reached 144.0. Let us tell you, till now the central employees coming under the 7th Pay Commission are getting 55 percent dearness allowance. Now it is almost certain that the dearness allowance will increase by 3 percent in July. In January, the index number was 143.2 points, due to which the score of dearness allowance was 56.39 percent. In February, the index was 142.8 points, in March 143 points and in April 143.5 points. On this pattern, dearness allowance reached 56.72 percent, 57.09 percent, 57.47 percent by April. Now with the data of May, the score of dearness allowance has become 57.85 percent. Now only the data of June will be awaited.

3% DA Hike is sure!

Good news for central employees because now at least 3 percent dearness allowance will increase. This is because, even if the AICPI index remains at 144 in June, even then the dearness allowance will reach 58.08%. At the same time, even if there is a decline of 0.5 points in the index, even then the dearness allowance will increase by only 3%.

Trend of AICPI and DA calculation

The AICPI index and DA score from January 2025 to April 2025 has been something like this.

DA has crossed 57% by May. But, it can reach 58 by the time June numbers come. If this trend continues in June, then the DA of central employees will be 58% from July.

When will the next revision in dearness allowance happen?

The next revision in dearness allowance (DA Hike) for employees is to be implemented from July 2025. But, it is announced by September or October. Actually, the June figure will come by the end of July. After this, it will be decided on this basis how much the increase is to be. After this, the file will reach the Finance Ministry from the Labor Bureau and then the Cabinet will approve it. After this, the increased DA will also be paid from the salary of the month in which the approval is received. The payment of the intervening months is done through arrears.

What will be the effect of a 3% increase in DA?

Suppose the basic salary of an employee is ₹30,000.

Dearness Allowance Percentage DA Amount

Existing DA 55% ₹16,500

New DA 58% ₹17,400

Difference (Increase)

₹900

That is, the salary will increase by ₹900 every month. The annual increase will be around ₹10,800.

Effect of 8th Pay Commission on DA

The 8th Pay Commission is yet to be constituted. After this, there will be a revision in the salary of the employees according to the recommendations. But, the role of dearness allowance will also remain in the new pay commission. The government has made it clear that the new pay commission will be implemented from January 1, 2026. In such a situation, it is believed that the dearness allowance will reach 61%. The calculation of allowances like DA and HRA will be different on the new basic, due to which a big jump in the net salary is possible.

What does the rule say?

The government revises DA every 6 months - once in January and then in July. DA is determined on the basis of the average of the AICPI (IW) index. After every increase reaches 50%, the new basic salary is decided by merging the dearness allowance. But, it was not merged when it was 50 percent. But, when the new pay commission comes, it will be zeroed and merged.

Conclusion

The AICPI figures that have come till now show that the jackpot of DA is fixed for central employees in July 2025. An increase of 3% is almost certain. The current figures of AICPI are clearly showing that the DA of central employees can go up to 58% in July 2025. This will increase the salary well and its calculation will prove to be even more beneficial when the next pay commission comes.

Frequently Asked Questions (FAQs)

Q1. How much DA are central employees getting right now?

55% DA is being given from January 2025.

Q2. How much can the DA be in July 2025?

According to AICPI data, it can increase up to 58%.

Q3. What is AICPI index and how does it affect DA?

It is a consumer price index which is prepared on the basis of inflation. Through this, the government decides DA.

Q4. How much will the salary be affected by a 3% increase in DA?

If the basic salary is ₹30,000 then there will be an increase of ₹900 per month.

Q5. What will be the impact of the 8th Pay Commission on DA?

DA rates will be applicable on the new basic salary, which can lead to a big jump in the total salary of the employees.