DA Hike July 2025: Central employees are in for a treat! How much will the dearness allowance increase, 57 or 58%? See the full calculation..

DA Hike in July 2025: There is good news for lakhs of central government employees and our senior citizens who receive a pension. Dearness Allowance (DA) and Dearness Relief (DR), which provide some relief from inflation, are going to increase again from July 2025. Right now, everyone is getting 55% DA/DR from January 2025. Now the question is, how much will it increase from July? The recent inflation figures (CPI-IW) for March 2025 indicate that this time too, there may be a decent jump in DA.

What do the inflation figures of March 2025 say?

The Labor Bureau attached to the Ministry of Labor and Employment tells every month how much inflation has increased or decreased for laborers. On this basis, the DA of government employees is decided. The AICPI-IW index is released based on retail prices collected from 317 markets of 88 industrial centers of the country.

In March 2025, this inflation meter (CPI-IW) climbed 0.2 points to reach 143.0.

This meter has been going down for the last three months, now it has come up a bit, which is a good thing (from the DA point of view).

According to this latest data, it seems that the DA / DR to be given to employees and pensioners from July 2025 can be around 57.91%. This estimate has been made for three consecutive months.

But yes, this is not confirmed yet. How much will be the final DA of July 2025? It will also depend on the inflation figures of the next three months, i.e., April, May, and June 2025. Understand, half the way is still covered.

It is important to note that the final figure of DA / DR for July 2025 will depend on the CPI-IW index of the next three months (April, May, and June 2025). As of now, the calculation process and expectations of a half-yearly increase in DA/DR are half complete.

How is DA/DR calculated?

There is a fixed formula for how much DA will increase. It is decided on the average of the CPI-IW data of the last 12 months. The formula given by the 7th Pay Commission is something like this:

DA % = [(Average AICPI-IW of last 12 months) - 261.42] / 261.42 * 100

(Here 261.42 is the number which was considered as the time base of 7th Pay Commission.)

How much DA can be received from July 2025?
The table below shows the CPI-IW data (some real, some estimated) from January 2025 to June 2025 and how much DA can be received from July 2025 based on them. (The calculation of the table is a bit complicated, and it is difficult to make it accurate based on the data you have given. Still, I am giving an approximate structure that will try to follow the pattern of your data.

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