New Delhi. The Modi government is planning to give gifts to all central employees once again. According to media reports, the dearness allowance (DA) and inflation relief (DR) received by central employees is being considered to increase 4 per cent. If this happens, the DA of central employees can be increased to 59 percent, which is 55 percent. There is a possibility that the government may announce an increase in DA in August or before Diwali next month or before Diwali. However, an increase in dearness allowance will be considered applicable from July.
Dearness allowances are revised twice a year, which is probably in the months of January and July. The dearness allowance is fixed based on the entire year average of the All India Consumer Price Index for Industrial Workers (AICPI-IW). From March to May, an increase in the index of AICPI-IW has been recorded for 3 months in a row. The AICPI-IW index has reached 143 in March, 143.5 in the month of April and 0.5 points in May to 144. In view of this, it is now being speculated that the government can increase dearness allowance by 4 percent. However, the final decision of how much dearness allowance will increase will be made on the data of AICPI-IW on June 2025 data.
This data of June will be released in August. It is believed that this will be the final increase in DA under the Seventh Pay Commission because the government has announced to implement the Eighth Pay Commission. Earlier in March this year, the Modi cabinet approved the decision of central personnel to increase dearness allowance by 2 percent. After this decision, the DA of central employees increased from 53 percent to 55 percent. This increase in DA was considered effective since 1 January 2025.
