Before Diwali, the central government can give a big gift to its lakhs of employees and pensioners. There are reports of a possible increase of up to 3 percent in Dearness Allowance (DA) for the period July-December 2025. At present, DA is 55 percent, and if the proposed increase happens, it can increase to 58 percent. According to a report by Financial Express, this time a higher increase is expected from the government, because last time only 2% increase was made in January 2025, due to which there was resentment among the employees.
Increase indicated by CPI-IW data.
The basis for change in dearness allowance is the Consumer Price Index (CPI-IW) for Industrial Workers. Recently, the Labor Bureau released the CPI-IW data for June 2025, which has increased by 1 point to 145. Along with this, the average index for 12 months from July 2024 to June 2025 has been 143.6.
These figures are included in the formula for determining DA. Based on this average, it is estimated that there may be a 3% increase in DA this time. Usually, this announcement is made by the Central Government in October or November, so that its benefits can be availed before Diwali.
How much will the salary increase? Know the calculation
A 3% increase in dearness allowance will have a direct impact on the monthly salary of central government employees and the monthly pension of pensioners. For example, if the basic salary of an employee is ₹ 40,000, then at present he gets ₹ 22,000 DA according to 55% DA. If DA becomes 58%, then this amount will increase to ₹ 23,200.
This means that the employee's salary will increase by ₹ 1,200 every month. Apart from this, due to the increase in dearness allowance, there is also an increase in travel allowance (TA), house rent allowance (HRA), and other related allowances, which further increases the total income.
Employees were disappointed with the last increase.
In January 2025, the government had increased DA by only 2%, which was the lowest increase in the last seven years. Earlier, an increase of 4% or more was usually done. In such a situation, employees and pensioners are expecting a higher increase this time.
Experts believe that, according to the CPI-IW data, in view of the current inflation rate, the government can approve an increase of 3%. This step will not only give relief to the pockets of the employees, but will also boost demand in the upcoming festive season.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
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