DA Hike Update: Will government employees receive 4% hike in July?

Government employees are hopeful for a substantial Dearness Allowance (DA) hike in July. The anticipation stems from a rising Consumer Price Index (CPI-IW), a key factor influencing DA calculations.

2 Min read

Author : Ajay Joseph

Published : May 16 2025, 01:14 PM IST

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DA Hike in July

The central government increases DA for its employees twice a year, in January and July. July is just one and a half months away.

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How much will DA increase in July?

Speculation has begun about how much DA the central government will increase in July. Last time, the DA for central government employees increased by only 2 percent.

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Number of Central Government Employees

There are about 12 million current and former employees of the central government. They were quite disappointed with the last DA hike of only 2 percent.

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Central DA Dependency

The DA of central government employees depends on the CPI-IW index. The Ministry of Labor has released the March data. Based on that, government employees estimate that the DA will increase more than the previous time.

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March Index

According to statistics, the March index has increased to 143.0. It was 143.2 in January.

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DA depends on the index

DA depends on the CPI-IW index. If it increases, DA increases. And if it decreases, DA decreases. The index has increased recently. So lakhs of government employees are optimistic that their DA will increase in the future.

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Current DA

Currently, central government employees are getting DA at the rate of 55 percent. Last time DA increased by 2 percent. They are claiming that if the DA becomes 59 percent from July, it will benefit them.

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How to calculate DA

According to the Seventh Pay Commission, DA is calculated based on the average of the CPI-IW data of the last 12 months. DA and DR are increased to protect employees from the effects of inflation.

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7th Pay Commission Tenure

The tenure of the 7th Pay Commission is ending in December this year. The Modi government has already recommended the Eighth Pay Commission.

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DA in 8th Pay Commission

There is also a discussion about whether DA will be included in the 8th Pay Commission.

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Implementation of 8th Pay Commission

It is not clear to the central government employees when the 8th Pay Commission will be implemented.

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Optimistic about DA increase

However, some government employees are optimistic about the DA increase. They also believe that they will get a lot of money before Puja.

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