Central Government Employees Likely to Get 4% DA Hike from July 2025

Central Government Employees Likely to Get 4% DA Hike from July 2025

📅 July 23, 2025 | 📰 National News

New Delhi: In a major relief for central government employees and pensioners, a 4% increase in Dearness Allowance (DA) is expected from July 2025. This would take the current DA from 55% to 59%, offering a timely financial cushion amid rising prices.

📈 Why Is DA Increasing?

The DA is revised twice every year – in January and July – based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).

As per the latest data:

• March 2025 AICPI-IW: 143
• April 2025: 143.5
• May 2025: 144

If June’s index reaches 144.5, the 12-month average will support a 4% DA hike. Experts believe this is highly likely.

📅 Expected Announcement

The DA hike will be effective from 1 July 2025, but the official announcement may come by September or October 2025, possibly before the Diwali festival season.

Employees will receive arrears for July, August, and September once the hike is approved.

💼 Who Will Benefit?

The hike will benefit over 1 crore people, including:

• More than 50 lakh central government employees
• Approximately 65 lakh pensioners

For instance, an employee with a basic salary of ₹18,000 will get an increase of ₹720 per month.

🧾 Final DA Hike Under 7th Pay Commission

This will be the last DA revision under the 7th Pay Commission, which ends on 31 December 2025. From 1 January 2026, revisions will fall under the 8th Central Pay Commission.

📢 What’s Happening with the 8th Pay Commission?

Though the 8th Pay Commission has been announced, its Terms of Reference are not finalized yet. No committee has been formed so far.

As per estimates, it may take 18–24 months for the commission to submit its report. However, its implementation is expected to be effective from 1 January 2026, with arrears paid later.

🔍 Summary Table

Key Detail	Information
Expected DA Hike	4% (55% → 59%)
Effective Date	1 July 2025
Likely Announcement	Sept–Oct 2025 (before Diwali)
Based On	CPI-IW Inflation Data
Beneficiaries	1 crore (employees & pensioners)
Final DA under	7th Central Pay Commission
8th CPC Start Date	1 January 2026 (expected)

Keep following for official updates once the CPI data for June is released. This hike is set to provide some festive-season relief to lakhs of government staff and pensioners.