There is good news for nearly 50 lakh central government employees and 67 lakh pensioners. Based on the newly released All India Consumer Price Index (AICPI) data, the government is preparing to announce another increase in Dearness Allowance (DA) from July 2025.
DA Likely to Rise to 58%
According to official sources, the Finance Ministry is likely to propose a 3% hike in DA, taking the total from 55% to 58%. Once approved, a formal order will be issued. If the announcement is made in September 2025, employees will see the revised salary from October, along with arrears, ensuring a festive bonus just ahead of Diwali.
Previous Hike in January 2025
Earlier in January 2025, DA was increased by 2%, moving from 53% to 55%. Since DA is revised twice every year — in January and July — this will mark the second revision of the year.
Experts: Last DA Hike Under 7th Pay Commission?
Experts believe this could be the final DA hike under the Seventh Pay Commission, as the Eighth Pay Commission is expected to be implemented from 1 January 2026. The DA for central government employees and pensioners is calculated on the basis of the AICPI index, which currently stands at 58.18%, giving way to the forecasted 3% increase.
If implemented, this move will bring much-needed relief to millions of employees and pensioners, while also marking the beginning of the transition toward the 8th Pay Commission era.
Leave a Reply