If you’re a central government employee or pensioner, there’s a good chance you’ve been wondering when the next DA hike will happen—and more importantly, by how much. Well, the wait might be almost over.
According to recent updates, the government could announce a 3% to 4% increase in Dearness Allowance (DA) before Raksha Bandhan 2025. And yes, that could bring a real boost to your monthly income.
What’s Going On With the DA Hike?
Right now, DA for central employees stands at 55%. This was after a 2% hike in March 2025, which was applied from January.
Now, if the government approves another 4% hike in July, your DA could reach 59%—a level we haven’t seen before. For lakhs of employees and pensioners, that would mean real money in your pocket each month.
And the best part? There’s a strong chance the announcement could come just before Raksha Bandhan, sometime in late August or early September.
Why Does DA Keep Changing?
You might be wondering—why all these changes, and how does the government decide this stuff?
Here’s the simple answer: DA is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). That’s just a technical way of saying the government tracks how expensive daily essentials are in industrial towns across India.
- They gather these prices every month, average them out, and review the data twice a year:
- July DA revisions are based on data from January to June
- January revisions come from July to December data
Who Will Benefit—and By How Much?
This change won’t just impact a few—it affects a massive number of people:
- Around 48 lakh central government employees
- Over 67 lakh pensioners
Let’s say your basic salary is ₹18,000. A 4% hike means an extra ₹720 every month. Over a year? That’s ₹8,640 more in your bank.
Now, if you’re earning a basic salary of ₹56,000, that monthly extra jumps to ₹2,240—meaning a yearly boost of over ₹26,000.