With the 7 th Pay Commission drawing to a close in December 2025, central government employees and pensioners are impatiently waiting to know the last hike to Dearness Allowance (DA) and their future salary revisions. As the inflation is increasing and the Consumer Price Index (CPI-IW) is demonstrating the regular growth, it is possible to expect the increase in the DA by 3%. The update would provide some much needed financial relief before the festive season.
DA Hike Expected Around Diwali
All-IndiaCPI-IW in June 2025 increased to 145 and the average 12-month index escalated to 143.6. Under the formula, this will amount to 58 per cent DA compared to the current 55 per cent2 as per the 7 th Pay Commission. Although, the hike will take place on July 1, it is likely to be announced near Diwali which is in line with what the government tends to do as disbursements during the festive season.
Fitment Factor and Salary Impact
It is the optimal formula of fitment in the 7 th Pay Commission which is rated as 2.57. It is a multiplier revising basic pay. As an illustration, a worker who is receiving 18000 as basic salary is now getting 27900 with 55 per cent DA in his pay packet. Under the new DA rate of 58 percent, the monthly salary will be 28440 rupees.
8th Pay Commission on the Horizon
The 8th Pay Commission was notified back in January 2024 but it is doubtful that it will become effective until around the middle of 2027. It might take two years before the new panel is formed, recommendations compiled and cabinet approval achieved, and the current commission is expected to last until December 2025.
Salary and DA Comparison Table
| Component | Current (July 2025) | Expected (Post DA Hike) |
|---|---|---|
| Basic Pay (Entry Level) | ₹18,000 | ₹18,000 |
| DA Rate | 55% | 58% |
| DA Amount | ₹9,900 | ₹10,440 |
| Total Monthly Salary | ₹27,900 | ₹28,440 |
As the last-time DA upwardness of the 7 th Pay Commission is expected to be given in close future, both employees and pensioners are to follow the news released by the government subjected to official information. This will not only be rising in terms of monthly income but will also form the benchmark to the future pay revision under the new 8th Pay Commission.
