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7th Pay Commission: The DA of central government employees is expected to increase by 2% to 55% in the upcoming DA hike before Holi.
7th Pay Commission: The DA hike is announced twice a year (with effect from January and July).
7th Pay Commission DA Hike 2025: Central government employees are likely to get a good news soon as the Centre is set to announce DA hike for the January-June salary hike cycle before Holi. According to reports, the government might announce a 2 per cent DA hike before Holi this month.
The DA hike, which is announced twice a year (with effect from January and July), raises the take-home salaries of the central government employees as per the inflation rate.
7th Pay Commission: Likely DA Hike This Month
The dearness allowance of central government employees is expected to rise by 2% in the upcoming DA hike before Holi, according to reports. After this, the dearness allowance will increase to 53 per cent to 55 per cent of the basic pay.
However, a final decision on this will be taken in a Cabinet meeting, headed by Prime Minister Narendra Modi.
The festival of Holi is on March 14, 2025.
In the previous DA hike in October 2024, the central government employees received a DA hike of 3 per cent, with effect from July 1, 2024. After the hike, the DA had increased from 50 per cent to 53 per cent of the basic pay. Pensioners also received the same hike in dearness relief.
DA is given to government employees, while DR is given to pensioners.
7th Pay Commission: How Much Will Salary Increase?
On a 2% DA hike, salary of the entry-level central government employee, who has a basic salary of around Rs 18,000 per month, will increase in the range of Rs 360 per month, effective from January 1, 2025.
If somebody’s salary is Rs 30,000 per month and has Rs 18,000 as the basic pay, he or she now gets Rs 9,540 as dearness allowance, which is 53 per cent of the basic pay. However, after the expected 2 per cent hike, the employee will get Rs 9,900 per month, which is Rs 360 higher.
However, in case of 3 per cent DA hike, the employee will get a increase of 540 in dearness allowance to Rs 10,080 per month.
How Is DA Hike Calculated?
The DA and DR hike is decided based on the percentage increase in 12 monthly average of the All India Consumer Price Index (AICPI) for the period ending June 2022. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September.
In 2006, the central government had revised the formula to calculate the DA and DR for central government employees and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.
However, the latest CPI-IW indicates a 2% increase in DA for central government employees, effective January 2025, bringing it to 55.98% under the 7th CPC.
8th Pay Commission: What Is The Status?
The central government in January announced the 8th Pay Commission to revise the salaries and pensions of its employees even as the tenure of the 7th Pay Commission comes to an end this year. However, the terms of reference (ToR) and the members of the new commission are yet to be announced by the government.
According to reports, the government is likely to fix the terms of reference soon.
The new pay panel will be implemented in 2026, as the 7th Pay Commission’s tenure ends on December 31, 2025.
