Central government employees and pensioners awaiting DA are yet to hear any announcement regarding the DA rise from July 2025. At present, it stands at 55% of the basic pay, climbed to this from 53% in January 2025 after an increase of 2%.
Recent DA Trend since July 2025
The inflation numbers provided a constant increase to the AICP-IW index:
- March: 143.0
- April: 143.5
- May: 144.0
If the upward trend goes through June, the 12-month average might be around 144.17, what entails a DA of 58.85% per 7th CPC formula, rounded up as 59%. So essentially, an upward movement of 4% could go to greet DA in July 2025 that would have been gazetted by late September or October, with Diwali as the backdrop.
Will DA Ever Strike 60%?
A report says DA might increase by 3%, taking it to 58%, and with persistent inflation, this will slowly creep up to 60% by January 2026. The much-anticipated 8th Pay Commission expected to commence from January 2026 is then supposed to merge DA accumulated so far into pay, thus cancelling the necessity for any calculation of DA.
Timeline & Next Steps
- From July 1, 2025: DA increase goes retroactively
- September-October 2025: Official announcement along with arrears
- From January 1, 2026: Potential 8th Pay Commission overhaul with DA reset
What This Means for Employees and Pensioners
Allowance for a basic pay of ₹30,000 at 55% DA stood at Rs 16,500 while an increase to 59%, with the new allowance being Rs 17,700, yields a difference of Rs 1,200 per month or Rs 14,400 per annum. Pensioners are also benefited as pension rates are based on DA.
Conclusion
It is unlikely for DA to be fixed at 60% by July 2025 but it is almost fixed at 59%. With persistent inflation, it may well touch 60 by January 2026 if the 8th Pay Commission decides to merge DA with basic pay. The actual confirmation will come once the CPI-IW data for June is out and cabinet approval is attained.
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