DA Hike 2025: Good News for Govt Employees and Pensioners! THIS MUCH Hike Expected in July 2025, Check Details

DA Hike 2025:  The Ministry of Labor has issued the All India Consumer Price Index (AICPI) figures for April. It shows an increase of 0.5 points in April, and the figure has reached 143.5. With this data, there is expectation of 3% DA hike in July. But before the decision of final rate, people have to wait the data for May and June months.

What is Expected DA Hike in July 2025?

Central government changes the rates of dearness allowance two times in a year; January and July. Change in DA in January depends on the previous year data from July to December and similarly, change in DA in July depends on the data from January to June of the same year. 
•    There is no clear rate confirmed for the DA hike. The rate of dearness allowance hike in July 2025 will depend on the CPI-IW index data from January to June released by the Ministry of Labor. But till now, only January to April data is available. May and June data will decide actual rate hike. 
•    In January 2025, the AICPI was 143.2, in February it was 142.8, in March it was 143.0 and in April was 143.5 due to which the DA score has increased to more than 57%. With current data, DA is expected to increase by 3% in July.
•    If AICPI points in May and June 2025 increase and the DA score crosses 58%, then 3% can be expected, but if there is a decrease in the points, DA can be seen to increase by 2%. On increasing by 2%, DA is expected to increase from 55% to 57 from July 2025 and on increasing by 3%, it is expected to reach 58%.

How to Calculate Dearness Allowance?

The formula to calculate dearness allowance is: 
7th Pay Commission DA% = [{12-month average of AICPI-IW (base year 2001=100) for the last 12 months – 261.42}/261.42×100]
If 12 month average AICPI-IW IS 392.83, DA%= (392.83-261.42)/261.42×100 = 50.26
Now with the formula, DA is 50.28% of the basic salary. 

Government employees and pensioners can expect DA hike 2% to 3% in July 2025. The final rate of hike will depend on the data of AICPI in May and June 2025.