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There is a great news for central government employees and pensioners! The festival of Rakshabandhan is near and before that the Modi government is preparing to give its employees a gift to increase dearness allowance (DA). Earlier this year, DA was increased from 53% to 55%. Now there are reports that the government may soon announce another increase.

3% DA hopes expected

Sources quoting media reports claim that the government may announce an increase in 3% dearness allowance for July 2025. If this happens, the current 55% DA will increase to 58%. This announcement is likely to be made before Rakshabandhan, and employees and pensioners will start getting increased amount by October. Explain that the government amends DA twice every year, so that employees can get relief according to inflation.

Complete mathematics of DA hike

This DA hike will be the last under the Seventh Pay Commission. Dearness allowances are determined on the basis of the All India Consumer Price Index (CPI). The government calculates an average CPI of 12 months, with the cost of inflation and the cost of living, the salary is adjusted. In this way, employees and pensioners get financial assistance amid rising inflation.

How much will the employees affect?

Although the government has not yet officially confirmed this increase, financial experts and employee unions are expected to increase 3% DA. This increase will have a direct impact on the total salary of the employees. For example, if an employee’s basic salary is Rs 10,000 and the current DA is 55%, he gets Rs 5,500 as DA. If the DA is 58%, this amount will increase to Rs 5,800.

This news has enthusiasm among central employees and pensioners, and everyone is waiting for this big announcement before Rakshabandhan.