DA Hike Likely by 2% to 3% in July 2025: Here’s What Central Employees Can Expect

New Delhi: Central government employees and pensioners are likely to receive another boost in their salaries as the Dearness Allowance (DA) is expected to increase by 2% to 3% in July 2025, according to the latest trends in inflation data. This update is based on the Consumer Price Index for Industrial Workers (CPI-IW), which recorded a 0.5-point rise in April 2025, reaching 143.5 — up from 143.2 in January.

The DA is reviewed twice a year — in January and July — and is calculated based on the CPI-IW data compiled by the Labour Bureau, which collects retail price data from 317 markets across 88 industrial centers.

2% to 3% DA Hike Likely

As per Harishankar Tiwari, former president of the AG Office Brotherhood, Prayagraj, and former general secretary of the All INDIA Accounts Committee, the current data indicates a probable increase of 2% to 3% in DA for central government employees. Tiwari notes that although the CPI-IW had witnessed a decline for three consecutive months earlier, it has now registered a positive movement for the past two months — setting the stage for another DA hike.

He added that while the final percentage will be clearer once May’s CPI-IW data is released, current indicators strongly point toward a moderate increase, similar to the previous one.

Previous DA Increase and Its Impact

The last DA revision came in March 2025, when the government announced a 2% hike, raising the rate from 53% to 55%, effective from January 1, 2025. DA is a crucial part of an employee’s salary structure, helping to offset the impact of rising inflation on fixed income.

To understand its practical impact:

• If a government employee’s basic pay is ₹40,000,

• At 57% DA, they would receive ₹22,800 per month as DA.

• At 58% DA, this amount would increase to ₹23,200 per month.

Thus, even a 1% hike translates to a noticeable difference in monthly income, especially for those at higher pay levels.

What’s Next?

While the official announcement from the central government is expected closer to July, all eyes are now on the May CPI-IW figures, which will solidify projections. If the upward trend in the inflation index continues, employees and pensioners could see a DA rise to either 57% or 58%, depending on the final calculation.

This DA adjustment will not only benefit over 50 lakh central government employees but also provide financial relief to more than 60 lakh pensioners who rely heavily on DA-linked dearness relief.

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Kuldeep Singh Chundawat

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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