THE NEWS DOSE DESK
New Delhi,July 3,2025,UPDATED:4.15PM
Central government employees and pensioners are expected to receive a 3–4% increase in Dearness Allowance (DA) effective July 1, 2025, marking the final hike under the 7th Pay Commission before its term ends on December 31, 2025. This follows a current DA rate of 55%, set after a 2% hike in March 2025.
The hike is tied to the 12‑month average of CPI‑IW (Consumer Price Index for Industrial Workers). May’s index rose to 144.0, after 143.5 in April and 143.0 in March. If June reaches 144.5, the average would hit 144.17, translating to a ≈58.85% DA—rounded to 59% (a 4% increase)
Timeline & Salary Impact
Timing: June CPI‑IW figures are expected by late July/early August, followed by final approval from the Union Cabinet in September–October, likely around Diwali. Any increase will be implemented retrospectively from July 1, with arrears paid out .
Financial Impact:
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For ₹18,000 basic, a 3% hike adds ₹540/month.
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For ₹30,000 basic, DA rises by ₹1,200/month.
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Pensioners receive equivalent Dearness Relief (DR)
This DA revision shields employees from inflation and acts as a buffer until the 8th Pay Commission, due to recommend from January 2026, comes into play. A 3–4% DA hike, raising the rate to 58–59%, is expected from July 1, 2025. Final figures await June CPI‑IW data (due late July), with decisions likely in September–October. Let me know if you’d like personalized impact estimates or updates on the 8th Pay Commission.
