In total, approximately one crore central government employees and pensioners eagerly await a major pay hike due to an increase in DA. This announcement is expected to bring some relief in an inflationary situation. A DA hike is one of the few important measures that help government employees and pensioners in facing their increasing cost of living. Hence, this update is set to create a buzz all over.
Expected Percentage Of DA Hike
The recent reports suggest that the DA is to be hiked by around 3% to take it from 55% up to 58% for the period of July-December 2025. This estimate is drawn considering the All India Consumer Price Index for Industrial Workers (AICPI-IW) data as available for March and April 2025, with May and June yet to be taken into account. However, the DA would hover around 57.95%, should the inflation situation persist, though it may vary marginally with the data charted finally.
Timing Of The Announcement
The Modi government is expected to announce the DA hike around Diwali after the cabinet meeting, expected sometime in the coming weeks. This will hence be the last DA revision under the 7th Pay Commission that ends on December 31, 2025. Employees and pensioners are hopeful for a timely announcement to be followed by arrears for the period commencing July 2025, so as to receive a boost during the festival season.
Impact On Employees And Pensioners
The hike in DA will benefit directly one crore central government employees and pensioners. For a basic salary of ₹18,000, 3 percent in DA means an extra income of ₹10,440 per annum; while 2 percent means ₹10,260. An increase under the now-in-use 7th Pay Commission calculation method adjusts salaries as per inflation and hence stabilizes the financial condition of many households.
No Implementation Of The 8th Pay Commission
The centre government has ruled out implementation of the 8th Pay Commission at this point in time despite speculations. Its attention is on the DA adjustment, that will immediately give relief. This decision has put a bit of a damper on any hope for salary restructuring to higher levels, but still it remains an important step for the DA hike to support government workers.
Also Read:Income Tax New Rules 2025: Get Full Support For Easy Filing, Know The Steps