New Delhi: Central government employees are in for a major announcement soon, as the government is expected to hike the Dearness Allowance (DA) and Dearness Relief (DR) in July 2025. This biannual revision, which helps offset the impact of inflation, is likely to result in a DA increase of 3% to 4%, pushing the total DA up to 58% or even 59%.
📊 DA Hike Based on CPI-IW Data
The revision in DA is linked to the All INDIA Consumer Price Index for Industrial Workers (AICPI-IW). For May 2025, the index saw a 0.5-point rise, reaching 144. Notably, this marks a consistent upward trend for three consecutive months:
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March 2025: 143
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April 2025: 143.5
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May 2025: 144
This steady rise strongly indicates that the government may soon approve a 3% to 4% increase in DA effective from July 2025.
💸 What Will Be the New DA?
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If the DA is increased by 3%, the total DA will rise from the current 55% to 58%.
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If the hike is 4%, the DA will jump to 59%.
This increase will offer much-needed relief to central employees and pensioners, helping them tackle rising living costs more comfortably.
🗓 When Will the Announcement Be Made?
The final decision will be made after the release of June 2025’s CPI-IW data, which is expected in the first week of August. Based on this, the Union Cabinet will finalize the DA hike. Once approved, the new rate will be applicable from July 1, 2025, and arrears will be credited accordingly.
🧾 What Is Dearness Allowance (DA)?
Dearness Allowance is a cost-of-living adjustment paid to government employees and pensioners. It is added to the basic salary to help offset the impact of inflation. Revised twice a year—in January and July—DA is calculated based on the CPI-IW index, which reflects prevailing inflation trends across the country.
With inflation on the rise, the upcoming DA hike is expected to bring significant relief to lakhs of central employees and pensioners. Employees are advised to stay tuned for the official announcement in early August.
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- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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