Under the 7th Pay Commission, DA is increased twice a year. The first increase comes into effect from January 1 and the second from July 1. The first increase of 2025 will be effective from January 1, 2025. Its official announcement may be made in March 2025. However, the government has not yet officially announced the DA increase.
7th Pay Commission DA Hike: Central government employees and pensioners are going to get great news before Holi (Holi 2025). This year Holi is on 14 March 2025. The government can give a big gift to government employees and pensioners by announcing DA hike before Holi.
Under the 7th Pay Commission, DA is increased twice a year. The first hike comes into effect from January 1 and the second from July 1. The first hike of 2025 will come into effect from January 1, 2025. Its official announcement can be made in March 2025. However, till now the government has not officially announced the DA hike.
How much will the salary increase due to DA hike?
According to employee organizations, this time dearness allowance can increase by 3 to 4 percent. This can increase the salary of the employees from Rs 540 to Rs 720 per month. Let us understand this with an example:
If the basic salary of a government employee is Rs 18,000, then currently he is getting Rs 9,000 under 50 percent DA. If there is a 3 percent increase in DA, then the new dearness allowance will be Rs 9,540, that is, he will get Rs 540 more. On the other hand, if there is a 4 percent increase in DA, the new dearness allowance will be Rs 9,720, which will give Rs 720 more.
Pensioners will also benefit
Dearness Allowance (DA) is given to government employees. At the same time, it is Dearness Relief (DR) for pensioners. This time more than 1 crore government employees and pensioners will be able to take advantage of this increase.
How much was the increase last year?
The government increased DA by 3% in October 2024, increasing it from 50% to 53%. In March 2024, the government increased DA by 4% to take it to 50%.
How is dearness allowance decided?
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI). The government fixes the rates of DA and DR keeping in mind the average AICPI data of the last 12 months.
For Central Government employees
DA (%) = (Average of AICPI of last 12 months – 115.76) / 115.76) × 100
For Public Sector employees
DA (%) = (Average of AICPI of last 3 months – 126.33) / 126.33) × 100
Last DA hike before 8th Pay Commission
The 8th Pay Commission is likely to be implemented from 2026. Before that, Central Government employees will be able to avail two more DA hikes under the 7th Pay Commission. This will increase their monthly salary significantly.
