7th Pay Commission: Good news for central govt employees as DA may increase by...; check details

DA hike news: Central government employees may get a piece of good news soon as the central government plans to increase the Dearness Allowance (DA) from July 2025, reports suggest. This time, the government can increase the Dearness Allowance and Dearness Relief (DR) of central employees to around 58 per cent. This increase can be announced in August.

How much can the dearness allowance increase?

The All India Consumer Price Index (AICPI-IW) for May 2025 has increased by 0.5 points to 144. From March to May, this index has increased for three consecutive months. It was 143 in March, 143.5 in April and now 144 in May. As per this trend, there is a possibility of an increase of 3 to 4 per cent in dearness allowance from July 2025.

At present, Dearness Allowance for central employees is 55 per cent. The final decision on the DA hike will depend on the AICPI-IW data of June 2025 as to how much the dearness allowance will increase. This data will be released in August. If there is an increase of 3 per cent, then the DA of central employees will increase to 58 per cent. On the other hand, if DA is increased by 4 per cent, then it will increase to 59 per cent.

Last time, the Union Cabinet on March 28 announced the Dearness Allowance (DA) and Dearness Relief hike for lakhs of central government employees. The central government announced a hike in the dearness allowance by 2 per cent, thus taking the DA from 53 per cent to 55 per cent.

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When will the 8th Pay Commission be implemented?

If we look at the history of the previous Pay Commission, it takes 18 to 24 months for the recommendations of any commission to be implemented. Hence, it is believed that the 8th Pay Commission can be implemented only by 2027. This means that central employees can get many more increases in the dearness allowance.