7th Pay Commission update: DA hike for 2025 to be announced early this year?

Under the 7th Pay Commission, the central government is likely to announce the Dearness Allowance for central government employees at the beginning of 2025. Details regarding the announcement date have emerged.

7th Pay Commission DA Hike 2025

The central government revises the Dearness Allowance based on the cost of living as per AICPI data. The government reviews the index for January-June and July-December, then announces the DA hike after the 12-month average AICPI assessment.

DA Hike Expected in 2025

Accordingly, the central government plans to announce the Dearness Allowance under the 7th Pay Commission in January 2025. However, no official announcement has been made. Government employees should know that the DA/DR revision is based on the 12-month All India Consumer Price Index (AICPI) increase, and the DA hike is calculated based on the 12-month AICPI average.

AICPI Index and DA Calculation

As per October's data, the AICPI stands at 144.5. It is expected to rise to 145.3 based on November and December data. Therefore, the Dearness Allowance could increase to 56% in 2025. The current DA for government employees is 53%.

Impact of DA Hike on Salaries

It was raised last year in October, before Diwali. As per the rules, the central government is likely to announce the Dearness Allowance in the last week of February. Employees earning a minimum salary of Rs. 18,000 will receive an additional Rs. 540. Those earning Rs. 2,50,000 will have a DA of Rs. 7,500.

Dearness Allowance for Pensioners

For pensioners, this amount can range from Rs. 270 to Rs. 3,750. Recently, Union Minister of State Pankaj Chaudhary spoke about the 8th Pay Commission, stating that the government has no plans for it yet.