Da Hike News: Dearness allowance (DA) cannot increase in July 2025, employees and pensioners may get shock

There is increasing concern for central employees and pensioners about July-December 2025 DA (Dearness Allowance).
While only 2% DA increased in March 2025, which was the lowest in the last 78 months, now there are indications that the next increase can also be zero. If this happens, it will be disappointing as the final DA Revision of the 7th Pay Commission as this commission will complete 10 years on 31 December 2025.

What is dearness allowance (DA)?

Dearness allowance is given to government employees and pensioners to provide relief from inflation. It is a type of adjustment allowance, which is revised twice every year in January and July.

How is DA decided?

DA is calculated on the basis of AicPI-IW (All India Consumer Price Index for Industrial Workers), which is issued by the Labor Bureau.
DA growth is fixed based on the average AICPI-IW of every six months.

What happened in early 2025?

  • AICPI-IW was in January 2025: 143.2

  • Fall to February 2025: 142.8

  • Retail inflation rate (CPI) also fell to 3.34% in March, the lowest in the last 5 years.

  • If this decline continues even in April and May, the DA of July 2025 will either have a slight increase (1-2%) or there will be no increase.

How is DA calculated under the 7th Pay Commission?

DA =
{(The average AICPI-IW × 2.88)-261.4} × 100 ÷ 261.4 Here is the basis index of the seventh pay commission and the base of CPI-IW is 2016.

Why is this decline of concern?

  • The salary of the employees will be affected.

  • The monthly expenditure of pensioners will be directly affected as DA is an important part of their pension.

  • The speed of the economy will also be affected as DA increases consumption and demand.

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The Post Da Hike News: In July 2025, dearness allowance (DA) cannot increase, employees and pensioners may feel the first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.

Rahul Dev

Cricket Jounralist at Newsdesk

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