Before Rakshabandhan, the Modi government can give a big gift to about one crore central employees and pensioners across the country. Central employees and pensioners are eagerly awaiting an increase in dearness allowance in July 2025. However, now their wait is about to end. The government last increased DA by 2 percent in March 2025, causing it to 53 percent to 55 percent.
DA has increased by 3% in July
According to media reports, now it is expected that this time there will be a 3 percent increase in DA for July (7th Pay Commission Da Hike), which can reach the employees’ account by October 2025. Before the festive season, this increased allowance will bring great relief. However, no official announcement has been made about this yet.
How is the dearness allowance fixed?
The Counting of DA is based on a special formula based on CPI-IW (Consumer Price Index for Industrial Workers) issued by Labor Bureau of Labor Ministry. The government removes the average of the CPI data of the last 12 months and puts it in the salary increase formula of the 7th Pay Commission. The CPI-IW average for July 2025 is around 143.3. The DA is calculated from the data obtained by updating it according to the current base year. According to the latest data, the new DA can be about 58 percent. That is, this time DA is expected to increase by 3 percent.
How much difference will be made in your salary, understand mathematics
If the basic salary of an employee is Rs 25,000, then he is currently getting 55 percent DA i.e. Rs 13,750. If the DA is 58 percent, it will increase to about Rs 14,500. That is, the salary will increase by Rs 750. This allowance is given to balance the effect of inflation and directly affect the salary.
Last DA hike under 7th Pay Commission
This increase of July 2025 is considered to be the final DA growth under the 7th Central Pay Commission. In fact, the 7th Pay Commission came into force in January 2016 and its term will end in December 2025. After that, recommendations of the new Pay Commission i.e. 8th Pay Commission will apply. Every time a new pay commission is implemented, the DA is reset on zero due to changes in the base line of inflation. Earlier, DA reached 125 percent at the end of the 6th Pay Commission.
What is the latest update on the 8th Pay Commission?
So far, the government has not appointed any chairman or member for the update of the 8th Pay Commission, nor its official reference conditions have been issued. But employee organizations have submitted their demands to the government. It is believed that the Eighth Pay Commission may come into force from January 2026 and under this, the basic salary may increase by about 14 percent. However, this increase will be the lowest compared to the previous pay commissions. When the Seventh Pay Commission came into force, the salary increased by about 2.57 times.
