Published : Jul 31, 2025, 04:04 PM ISTUpdated : Jul 31, 2025, 04:11 PM IST
The central government is likely to announce a Dearness Allowance (DA) hike for its employees and pensioners. A 3% DA increase is expected in July 2025.
Before Raksha Bandhan, the central government might announce a significant pay raise for its employees and pensioners. This DA increase would be a festive gift for millions. The last hike, implemented earlier this year, raised the DA from 53% to 55%. Now, sources suggest another revision is coming.
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3% Dearness Allowance Hike
The government may soon announce a 3% DA hike for July 2025. If confirmed, the current DA will jump from 55% to 58%. This announcement is expected before Raksha Bandhan, with employees and pensioners receiving the revised amount by October. DA is revised twice yearly.
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Central Government Employees
This upcoming revision under the 7th Pay Commission, ending in December 2025, will be the final one. The DA revision isn't arbitrary; it's based on the All-India Consumer Price Index (CPI). The government calculates a 12-month average CPI to determine the hike, adjusting salaries for inflation and cost of living.
While the government hasn't made an official announcement, financial experts and employee unions widely anticipate a 3% DA hike. The DA hike directly impacts central government employees' overall salary. For example, if an employee's basic pay is Rs 10,000 and the DA is 55%, they currently receive Rs 5,500 as DA. If the government raises it to 58%, that amount becomes Rs 5,800.
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Central Employee Salary Update
This adds ₹300 to their monthly income, playing a key role in offsetting inflationary pressures on daily expenses. While no formal confirmation has been released by the central government, expectations are high. If announced before Raksha Bandhan, this hike would provide much-needed financial relief and festive cheer to millions of government employees and pensioners across the country.