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India.com
15 hours ago
- Business
- India.com
Last DA Hike Under 7th CPC To Be 3% or 4%? Anticipation Builds For July-December DA Hike
photoDetails english 2938525 Updated:Jul 29, 2025, 01:56 PM IST DA Hike Twice A Calendar Year 1 / 10 Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July. Last DA, DR Hike Under 7th Pay Commission 2 / 10 The central government employees are eagerly waiting for the official government announcement on DA, DR hike for the July-December period. This DA, DR hike is going to be the last one under the 7th Pay Commission because the new 8th Pay Commission will be in place from January 2026. DA DR Hike: May AICPI-IW Figures 3 / 10 The AICPI-IW Figures for May 2025 released by Labour Beaureau recently has once again grabbed attention on the expected Dearness Allowance (DA) and Dearness Relief (DR) hike for lakhs of govt employees and pensioners which is due for July-December 2025. May 2025 AICPI-IW Figures Hint At DA Updates Ahead Of 8th Pay Commission 4 / 10 As per the data published 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% 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. May 2025 AICPI-IW Figures Vs April, March Data 5 / 10 The rise in May 2025 AICPI-IW Figures comes after rise in the last two months of the CPI-IW. March 2025, the All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 143.0, representing a 0.2-point increase from the previous month. Year-on-year inflation for the month of March, 2025 stood at 2.95% as compared to 4.20% in March, 2024. The All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 143.5 in April. Year-on-year inflation for the month of April, 2025 stood at 2.94% as compared to 3.87% in April, 2024, according to the Labour Bureau. June 2024-May 2025 CPI-IW Figures 6 / 10 CPI-IW index values from June 2024 to May 2025 are as follows: June 2024: 141.4 July 2024: 142.7 August 2024: 142.6 September 2024: 143.3 October 2024: 144.5 November 2024: 144.5 December 2024: 143.7 January 2025: 143.7 February 2025: 143.2 March 2025: 142.8 April 2025: 143 May 2025: 143.5 June 2025: 144 Average of AICPI-IW over the last 12 months: 143.3 Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time? 7 / 10 This increase of figures in the last three months AICPI-IW --March, April and May – hint towards expected DA, DR for central government employees and pensioners at around 58.08 percent. On the basis of the figure, media reports have calculated a hike of 4% hike from July 2025. DA will be thus likely be pushed from current 55 percent to 59 percent, ahead of the implementation the 8th Pay Commission from January 2026. July-December 2025 DA Hike Predictions 8 / 10 These are however just early DA, DR hike predictions. It all depends on the AICPI-IW figures for the next month i.e for June 2025, to arrive at a concrete conclusion on DA hike for central government employees and pensioners. DA Hiked To 55% For Jan-June 2025 9 / 10 Much to market expectations, the Union Cabinet led by PM Narendra Modi on March 28 announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees. The Modi government announced hike in the dearness allowance by 2 percent, thus taking the DA from 53 percent to 55 percent. 7th Pay Commission DA Hike: How Much Salary Increased Last Time? 10 / 10 The basic salary of the employee is Rs 18,000 Dearness Allowance Hiked To 55 Percent: Pay increase of Rs 360 more per month New Dearness Allowance Annually: Rs 4,320
Time of India
a day ago
- Business
- Time of India
DA hike: What raise will government employees get under 7th Pay Commission? Here's what to expect from the 8th CPC
As the final leg of the 7th Pay Commission nears, nearly 1 crore central government employees and pensioners are now tracking the next hike in Dearness Allowance (DA) and Dearness Relief (DR), which is due to be announced soon. Although the hike will be effective from July 2025, the actual credit of revised salaries typically happens a few months later — around October — in sync with the festive season. This will be the last DA/DR adjustment under the 7th Pay Commission framework, which came into force in January 2016 and will reset in December 2025 ahead of the 8th CPC's implementation, according to an ET report. How much DA can employees expect this time? The dearness allowance (DA) hike is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), which is released each month by the Labour Bureau under the Ministry of Labour. The CPI-IW tracks monthly fluctuations in the cost of a fixed basket of goods and services commonly Based on the 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW), the upcoming hike could be 3%, taking the DA from the current 55% to around 58% of basic pay. Month CPI-IW Index Value June 2024 141.4 July 2024 142.7 August 2024 142.6 September 2024 143.3 October 2024 144.5 November 2024 144.5 December 2024 143.7 January 2025 143.7 February 2025 143.2 March 2025 142.8 April 2025 143.0 May 2025 143.5 June 2025 144.0 Average (12 months) 143.3 Source: Labour Bureau, Ministry of Labour, ET report As per the official formula, DA under the 7th Pay Commission is calculated using the average of CPI-IW values (base year 2001), adjusted using a linking factor of 2.88. The average CPI-IW (2016=100) from June 2024 to May 2025 is 143.3, which translates to 412.7 in the 2001 series. Plugging this into the formula: DA% = [(412.70 - 261.42) ÷ 261.42] × 100 = ~57.8% That gives room for a 3-percentage-point hike. For someone drawing a base pay of Rs 25,000, this translates to an increase in DA from Rs 13,750 to Rs 14,500. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Brain tumor has left my son feeling miserable; please help! Donate For Health Donate Now Undo What was the last revision? In March 2025, the Centre raised the DA by 2% with retrospective effect from January, moving the allowance from 53% to 55% of basic pay. What happens after the 7th CPC ends? Once the 8th Pay Commission comes into effect from January 2026, the DA will reset to zero — a standard procedure followed during the transition between pay commissions as the base index is restructured. Abhishek Kumar, a registered investment advisor and founder of Sahaj Money, explained as quoted by ET 'The linking factor of 2.88 is used to bridge CPI-IW bases. The Labour Bureau had noted that for August 2020, CPI-IW under the 2001 base was 338, while the 2016 base showed 117.4 — giving us 338 ÷ 117.4 = 2.88.' What's the roadmap for the 8th Pay Commission? The Centre has not yet finalised the Terms of Reference (ToR) or appointed any members to the new pay commission. Most analysts expect the rollout to take another 18–24 months from January 2026, with arrears likely to be paid out once the new structure is implemented. An Ambit Capital report suggests a potential salary bump of around 14% under the 8th CPC for employees earning Rs 50,000 in basic pay, assuming DA reaches 60% before the reset. Historical context Under the 6th Pay Commission, DA had reached as high as 125% of basic pay. For instance, an employee earning Rs 7,000 received Rs 8,750 in DA — more than their base salary — along with allowances totalling Rs 4,550. However, salary growth under the 8th CPC is expected to be the lowest among the last four commissions, primarily due to flatter DA build-up over the years. With the final DA revision under the 7th Pay Commission nearing and the 8th CPC still 1.5–2 years from implementation, this year's hike may serve as a temporary buffer until the next pay reset kicks in. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
2 days ago
- Business
- Economic Times
Last DA hike of 3% or 4% under 7th CPC in July 2025? Central government employees can get this much increase in dearness allowance
ET Online The July 2025 DA increase is the last dearness allowance hike for central government employees before the conclusion of the 7th Pay Commission in December 2025. Around 1 crore central government employees and pensioners are now eagerly awaiting a major salary boost, as the increase in DA (dearness allowance) and DR (dearness relief), which is declared twice a year — in July and December — is expected to be announced soon. This will also be the final DA and DR hike for around 33 lakh central government employees and 66 lakh pensioners under the 7th Pay Commission, which came into effect from January 2016 and is set to end in December this year. Even though the DA hike typically takes effect from July, it's announced with a lag and is usually credited in the accounts of central government employees and pensioners around October, aligning with the festive season in the country. So, will government employees see a substantial salary bump to celebrate around October? What kind of a DA hike can they look forward to this time? ET Wealth Online breaks it down for you What was the last hike in DA announced by the government under the 7th Pay Commission? In March of this year, the government announced a 2% hike in the dearness allowance, effective from January 2025, to be paid to central government employees and pensioners, raising it to 55% of their basic pay. Prior to this hike, the DA was at 53% of basic pay. DA is a crucial factor in a government employee's salary, as it helps them offset the impact of inflation on their earnings. How much DA hike can employees expect from the July 2025 DA hike announcement? The DA hike is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau, which falls under the Ministry of Labour. Every month, the bureau shares these index values that track the relative changes in retail prices for a fixed basket of goods and services that are consumed by industrial workers over a specific time frame. The formula for calculating Dearness Allowance for central government employees under the 7th Pay Commission is:7th CPC DA% = [{12-month average of AICPI-IW (base year 2001) for the last 12 months – 261.42}/261.42x100]According to data available on the Labour Bureau website, these are the CPI-IW index values for the last 12 months, from June 2024 to May 2025. Month CPI-IW Index Value June 2024 141.4 July 2024 142.7 August 2024 142.6 September 2024 143.3 October 2024 144.5 November 2024 144.5 December 2024 143.7 January 2025 143.7 February 2025 143.2 March 2025 142.8 April 2025 143 May 2025 143.5 June 2025 144 Average of AICPI-IW over the last 12 months 143.3 Source: Labour Bureau, Ministry of LabourHowever, we will first have to link the 2016 base values to the 2001 base values by multiplying it by a factor (2.88). This will come to 412.70 (143.3 x 2.88) How does one arrive at this factor? Explains RIA Abhishek Kumar, RIA and founder of Sahaj Money: 'This factor of 2.88 has been arrived at to equate the latest base year (2016) to 2001. Labour Bureau data shows that for August 2020, the value of CPI-IW under old base (2001=100) was 33.8 and CPI-IW under new base (2016=100) was 117.4, so the factor is calculated as 338 ÷ 117.4 or 2.88. Now, inputting everything in the formula, the potential DA hike % under the 7th Pay Commission comes to: 412.70-261.42/261.42 X 100= 0.578This comes to 57.8%, or around 58%. Based on these calculations, the central government may go for a 3% hike in DA and DR from the present 55% to around 58%. This means that if an individual has a base pay of Rs 25,000, their DA will go up from Rs 13,750 at present to approximately Rs 14,500. When can central government employees expect the 8th Pay Commission to be implemented? The government hasn't yet finalized the commission's terms of reference (TOR), nor has it appinted a chairman or other members yet. Many experts believe that it could take another 1.5 to 2 years for the commission to come into effect. However, this commission will be effective starting January 2026. This means that for the intervening period from January 2026 till the commission is actually implemented, central government employees and pensioners will get arrears. According to an Ambit Capital report, if we assume a current basic pay of Rs 50,000, and if the DA is raised to 60% of the basic pay from the present 55% before the conclusion of the 7th Pay Commission, then salaries could go up by around 14% under the upcoming 8th Pay Commission. Even with that, it would still be the lowest income growth central government employees and pensioners have seen over the last 4 pay commissions (including the 7th Pay Commission). Before the recommendations of the 7th Pay Commission kicked in back in January 2016, the DA stood at 125% of basic pay. So, for someone earning a basic pay of Rs 7,000 under the 6th Pay Commission, their DA amounted to Rs 8,750, bringing their total pay to Rs 15,750. Plus, they also received Rs 4,550 in here's the catch: once a Pay Commission wraps up, the dearness allowance (DA) drops to zero because the index gets completely re-based. This means that under the 8th Pay Commission, the DA will reset to zero as well. The DA increase in July 2025 will be the last hike for central government employees before the conclusion of the 7th Pay Commission. And even though the recommendations of the 8th Pay Commission will be effective from January 2026, many reports suggest that its implementation is at least 1.5 years away.
Time of India
3 days ago
- Business
- Time of India
Last DA hike of 3% or 4% under 7th CPC in July 2025? Central government employees can get this much increase in dearness allowance
What was the last hike in DA announced by the government under the 7th Pay Commission? Academy Empower your mind, elevate your skills How much DA hike can employees expect from the July 2025 DA hike announcement? Month CPI-IW Index Value June 2024 141.4 July 2024 142.7 August 2024 142.6 September 2024 143.3 October 2024 144.5 November 2024 144.5 December 2024 143.7 January 2025 143.7 February 2025 143.2 March 2025 142.8 April 2025 143 May 2025 143.5 June 2025 144 Average of AICPI-IW over the last 12 months 143.3 When can central government employees expect the 8th Pay Commission to be implemented? Around 1 crore central government employees and pensioners are now eagerly awaiting a major salary boost, as the increase in DA (dearness allowance) and DR (dearness relief), which is declared twice a year — in July and December — is expected to be announced will also be the final DA and DR hike for around 33 lakh central government employees and 66 lakh pensioners under the 7th Pay Commission, which came into effect from January 2016 and is set to end in December this though the DA hike typically takes effect from July, it's announced with a lag and is usually credited in the accounts of central government employees and pensioners around October, aligning with the festive season in the country. So, will government employees see a substantial salary bump to celebrate around October? What kind of a DA hike can they look forward to this time? ET Wealth Online breaks it down for youIn March of this year, the government announced a 2% hike in the dearness allowance, effective from January 2025, to be paid to central government employees and pensioners, raising it to 55% of their basic pay. Prior to this hike, the DA was at 53% of basic pay. DA is a crucial factor in a government employee's salary, as it helps them offset the impact of inflation on their DA hike is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau, which falls under the Ministry of Labour. Every month, the bureau shares these index values that track the relative changes in retail prices for a fixed basket of goods and services that are consumed by industrial workers over a specific time formula for calculating Dearness Allowance for central government employees under the 7th Pay Commission is:7th CPC DA% = [{12-month average of AICPI-IW (base year 2001) for the last 12 months – 261.42}/261.42x100]According to data available on the Labour Bureau website, these are the CPI-IW index values for the last 12 months, from June 2024 to May Labour Bureau, Ministry of LabourHowever, we will first have to link the 2016 base values to the 2001 base values by multiplying it by a factor (2.88). This will come to 412.70 (143.3 x 2.88)How does one arrive at this factor? Explains RIA Abhishek Kumar, RIA and founder of Sahaj Money: 'This factor of 2.88 has been arrived at to equate the latest base year (2016) to 2001. Labour Bureau data shows that for August 2020, the value of CPI-IW under old base (2001=100) was 33.8 and CPI-IW under new base (2016=100) was 117.4, so the factor is calculated as 338 ÷ 117.4 or inputting everything in the formula, the potential DA hike % under the 7th Pay Commission comes to:412.70-261.42/261.42 X 100= 0.578This comes to 57.8%, or around 58%. Based on these calculations, the central government may go for a 3% hike in DA and DR from the present 55% to around 58%.This means that if an individual has a base pay of Rs 25,000, their DA will go up from Rs 13,750 at present to approximately Rs 14, government hasn't yet finalized the commission's terms of reference (TOR), nor has it appinted a chairman or other members yet. Many experts believe that it could take another 1.5 to 2 years for the commission to come into effect. However, this commission will be effective starting January 2026. This means that for the intervening period from January 2026 till the commission is actually implemented, central government employees and pensioners will get to an Ambit Capital report, if we assume a current basic pay of Rs 50,000, and if the DA is raised to 60% of the basic pay from the present 55% before the conclusion of the 7th Pay Commission, then salaries could go up by around 14% under the upcoming 8th Pay with that, it would still be the lowest income growth central government employees and pensioners have seen over the last 4 pay commissions (including the 7th Pay Commission).Before the recommendations of the 7th Pay Commission kicked in back in January 2016, the DA stood at 125% of basic pay. So, for someone earning a basic pay of Rs 7,000 under the 6th Pay Commission, their DA amounted to Rs 8,750, bringing their total pay to Rs 15,750. Plus, they also received Rs 4,550 in here's the catch: once a Pay Commission wraps up, the dearness allowance (DA) drops to zero because the index gets completely re-based. This means that under the 8th Pay Commission, the DA will reset to zero as DA increase in July 2025 will be the last hike for central government employees before the conclusion of the 7th Pay Commission. And even though the recommendations of the 8th Pay Commission will be effective from January 2026, many reports suggest that its implementation is at least 1.5 years away.
Business Upturn
22-07-2025
- Business
- Business Upturn
July 2025 DA Hike: Central government employees may get 3-4% raise in allowance, here's what to expect
Central government employees are likely to see another increase in their dearness allowance (DA) under the 7th Pay Commission, with the hike expected to take effect from July 2025. Based on current inflation trends and media estimates, the next DA hike could be in the range of 3% to 4%, although the government has not officially announced it yet. Currently, the DA rate stands at 55%, after the last revision in March raised it by 2%. DA is a key component of salaries, helping employees offset the impact of rising prices, while pensioners receive a similar benefit called dearness relief (DR). When and how is DA revised? The government revises DA twice a year: February–March , with effect from January 1 September–October, with effect from July 1 Although the hike becomes applicable from July, the formal announcement usually comes later in September or October. Employees then receive arrears for July, August, and September. DA is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labour Bureau. The government averages the CPI-IW over 12 months and applies the following formula: DA (%) = [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100 (Base year: 2016) Inflation trends and expected hike According to the labour ministry, inflation for rural and agricultural workers dipped below 3% in May 2025, down from over 3.5% in April. While these rural indices don't directly determine DA, they indicate price trends that influence the CPI-IW. If this trend holds, analysts expect a 3% to 4% DA hike, which could raise the rate to around 58% or 59%. What it means for salaries If the government approves a 3% DA hike, an entry-level central government employee with a basic pay of ₹18,000 per month could see an increase of about ₹540 per month. Higher basic pay brackets would see proportionally larger increases. The announcement is expected later this year after the government reviews CPI-IW data and finalizes the hike. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
