Central government to hike 4% DA from July 2025

The Central Govt is likely to hike the Dearness Allowance (DA) from July 2025 suggested reports based on inflation data. This DA will stand at 59% rising from current 55% and will be effective from July.

The All India Consumer Price Index for Industrial Workers (AICPI- IW) is the basis for DA calculation which rose by 0.5 points and is now 144. In the last three months, it had shown a steady increase in 0.5 points.

If the upward trend keeps rising then the 12-month average of AICPI-IW will rise to 144.17. On adjustments as per the 7th Pay Commission (term ends in December 31, 2025) the DA rate comes out to be around 58.58%, the govt might round off and approve a 59% DA from July 2025.

The announcement on DA hike might be effective from July, though it will be announced at a later date probably during Diwali.