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

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.

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.

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%.

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.

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.