7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
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7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55 percent to 59 percent.
7th Pay Commission: Centre (Representational Image)
7th Pay Commission: The Modi government is likely to increase the Dearness Allowance (DA) of Central government employees from 55 percent to 59 percent, effective July 2025. According to the reports, this anticipated adjustment is based on recent inflation data, particularly the rise in the All India Consumer Price Index for Industrial Workers (AICPI-IW). It is important to note that this DA hike i.e for July-December period, is going to be the last DA hike under the 7th Pay Commission because from January 2026 the government has announced to implement the 8th Pay Commission.
According to the data released by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for May 2025 increased by 0.5 point and stood 144.0 (one hundred forty four). Year-on-year inflation for the month of May 2025 stood at 2.93 percent as compared to 3.86% in May, 2024. The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.
DA Hike Formula Under 7th Pay Commission
Dearness Allowance is revised biannually, in January and July, based on the average AICPI-IW data over the past twelve months. The formula for calculating DA is: A (%) = [(Average CPI-IW for past 12 months – 261.42) / 261.42] 100. Using this calculation method, the expected hike is estimated at 4 percent.
Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time?
The rise in AICPI-IW figures over the past three months — March, April, and May — suggests that the expected Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners could reach approximately 58.08%. Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55% to 59%. This adjustment is anticipated ahead of the implementation of the 8th Pay Commission in January 2026.
Announcement Expected in September or October
It is important to note that the DA hike will take effect from July, however, the official announcements typically occur later. In previous years, such revisions have been disclosed in September or October, often coinciding with the festive season. This year, the announcement is also anticipated around Diwali.
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