Central government to hike 4% DA from July 2025
Based on the inflation data of All India Consumer Price Index for Industrial Workers (AICPI-IW), the hike in DA is likely to be done.
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.
