DA Hike: When will the announcement be made with regard to government employees dearness allowance increasing to 60%?

DA Hike 2025: Central government employees as well as pensioners are awaiting the likely hike of 3% in Dearness Allowance (DA) and Dearness Relief (DR) effective July 2025. In most cases, the announcement happens not in July but around the festive time, September or October, but the benefits are backdated to July.The government makes it a point to review the DA/DR rates for the second half of the year in July and January, officially twice a year. For example, the first increase for the year is set for January, that announcement happens in March, for July the announcement happens around September October. So it is possible that the 2025 July DA announcement follows this pattern too.Assuming a 3% increase based on prior current figures, it will be estimated that DA will be increased to 58%.How is the dearness allowance calculated?DA is calculated with regard to All India Consumer Price Index- Industrial Workers (AICPI-IW). This index was 143 in March 2025 and now it is 144 in May. If this trend continues, the likelihood of a 3% increase is stronger.How much has DA increased so far?Since the implementation of the 7th Pay Commission, the rate of DA has increased consistently. While it was 0% in 2016, we have seen 55% and expecting a further 3% increase in July. If this additional boost happens, it will bring DA to 58%. Assuming the next review in January 2026 is a 2% increase, then this number can reach 60%.Role of 8th Pay Commission With the assumption made for the 8th Pay Commission starting in January 2026, there is a chance that the DA accrued until that point will be merged into the basic salary which will be the normal during pay commissions. This is where the salary structure is revised and then the DA calculation starts fresh.The final outcome rests with the government.Currently, this remains a potential calculation that uses the inflation index as its basis. However, the conclusion will only come after the consideration of the central government during the cabinet meeting. Workers and retirees will have to wait a couple of months for this news.