DA Hike: How much will the salary of employees increase due to the increase in dearness allowance, understand the complete calculation

Breaking News, Digital Desk - ( DA Hike News ) There's good news for millions of central government employees and pensioners. 

The central government has approved a 3 percent increase in dearness allowance (DA). This decision came just before Diwali. With this increase, the DA rate has now risen from 55% to 58% of the basic pay and pension.

When will the increased DA be implemented?

The DA hike will be implemented retroactively from July 1, 2025, meaning the arrears for the last three months will be credited with the October salary. This is good news for approximately 4.8 million employees and 6.8 million pensioners.

How much will the salary increase?

A 3% increase in dearness allowance for central government employees has been announced, taking it from 55% to 58%. This increase will be effective from July 2025. This means that employees will receive 58% of their basic salary as dearness allowance.

Employees with a basic salary of ₹60,000 currently receive ₹33,000 as DA. Now, after the 3% increase, they will receive ₹34,800 as dearness allowance, meaning their gross salary will increase by ₹1,800.

How are DA and DR decided?

The dearness allowance (DA) for central government employees is determined based on the Consumer Price Index for Industrial Workers (CPI-IW). This data is released monthly by the Labor Bureau, which operates under the Ministry of Labor. DA is calculated based on this data.

What is the update on the Eighth Pay Commission?

The government announced the Eighth Pay Commission in January 2025. However, its formal formation has been delayed compared to previous commissions. 

An official notification on the commission's members and Terms of Reference (ToR) has not yet been issued. This announcement is significant because the term of the Seventh Pay Commission will expire on December 31, 2025.