DA Hike: Modi government can give a big gift to central employees before Rakshabandhan..

The Modi government can give a big gift to about one crore central government employees and pensioners across the country before Rakshabandhan. Central employees and pensioners are eagerly waiting for the increase in dearness allowance (DA Hike Latest News) in July 2025. However, now their wait is about to end. Last time the government increased DA by 2 percent in March 2025, increasing it from 53 percent to 55 percent.

DA is likely to increase by 3% in July.

According to media reports, it is now expected that this time there may be a 3 percent increase in DA for July (7th Pay Commission DA Hike), which can reach the employees' accounts by October 2025. This increased allowance will come as a big relief before the festive season. However, no official announcement has been made about it yet.

How is dearness allowance decided?
DA calculation is done with a special formula which is based on the data of CPI-IW (Consumer Price Index for Industrial Workers) released by the Labor Bureau of the Ministry of Labor. The government takes the average of the CPI data of the last 12 months and puts it in the formula of the 7th Pay Commission Salary Hike.

The CPI-IW average for July 2025 was around 143.3. The figure that comes by updating it according to the current base year is used to calculate DA. According to the latest data, the new DA can be around 58 percent. That is, this time there is a possibility of a 3 percent increase in DA.

How much difference will it make in your salary? Understand the math
If the basic salary of an employee is Rs 25,000, then currently he is getting 55 percent DA, i.e., Rs 13,750. If DA increases to 58 percent, it will increase to around Rs 14,500. That is, there will be an increase of Rs 750 in the salary. This allowance is given to balance the effect of inflation and directly affects the salary.

Last DA hike under 7th Pay Commission
This increase in July 2025 is considered to be the last DA hike under the 7th Pay Commission. The 7th Pay Commission was implemented in January 2016, and its tenure will end in December 2025. After that, the recommendations of the new pay commission, i.e., the 8th Pay Commission, will be implemented.

Every time a new pay commission is implemented, the DA is reset again and starts from zero because the baseline of inflation changes. Earlier, at the end of the 6th Pay Commission, DA had reached 125 percent.

What is the latest update regarding the 8th Pay Commission?

So far, the government has not appointed any chairman or member for the 8th Pay Commission (8th Pay Commission updates) nor have its official terms of reference been issued. But the employee organizations have submitted their demands to the government. It is believed that the 8th Pay Commission can be implemented from January 2026, and under this the basic salary can increase by about 14 percent.

However, this increase will be the lowest compared to the previous pay commissions. When the 7th Pay Commission was implemented, the salary increased by about 2.57 times.

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