{"id":13828,"date":"2025-09-19T01:26:32","date_gmt":"2025-09-19T01:26:32","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/19\/central-govt-employees-likely-to-get-3-da-hike-before-diwali-salary-to-rise-from-july-2025-economy-news\/"},"modified":"2025-09-19T01:26:32","modified_gmt":"2025-09-19T01:26:32","slug":"central-govt-employees-likely-to-get-3-da-hike-before-diwali-salary-to-rise-from-july-2025-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/19\/central-govt-employees-likely-to-get-3-da-hike-before-diwali-salary-to-rise-from-july-2025-economy-news\/","title":{"rendered":"Central Govt Employees Likely To Get 3% DA Hike Before Diwali; Salary To Rise From July 2025 | Economy News"},"content":{"rendered":"


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Last Updated:<\/span>

7th Pay Commission DA Increase: After the expected 3% hike, the dearness allowance for central government employees will increase to 58%.<\/h2>\n
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July 2025 DA Hike.<\/p>\n<\/figure>\n

DA Hike July 2025, DA Hike Latest News:<\/strong> Central government employees may soon get festive cheer on the salary front, as the Centre is expected to announce the July 2025 dearness allowance (DA) hike before Diwali, according to reports. Analysts estimate a 3% increase in DA this time, amid a cooling inflation trend. Currently, DA stands at 55% of basic pay. If the government approves a 3% hike, it will rise to 58%.<\/p>\n

Currently, central government employees receive DA at 55% of their basic pay. After the expected 3% hike, the DA will increase to 58%, according to india.com<\/em>.<\/p>\n

Importantly, this is an expectation. Any formal DA hike announcement will be made by the government during a Cabinet briefing. Though the Union Cabinet typically approves the new DA rate in September and October, it is paid out with arrears from July.<\/p>\n

This hike will benefit over 1.2 crore employees and pensioners in the country, giving them extra money to spend during the Dussehra and Diwali festivals.<\/p>\n

The DA hike is announced twice a year in February-March and September-October, with retrospective effect from January and July each year, respectively. It helps employees offset the impact of inflation.<\/p>\n

How Is DA Hike Calculated?<\/strong><\/p>\n

The hike in dearness allowance (DA) is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labour Bureau. The government calculates the DA hike by averaging CPI-IW data for the preceding 12 months, and applying a specific formula under the 7th Pay Commission:<\/p>\n

DA (%) = [(12-month average CPI-IW \u2013 261.42) \u00f7 261.42] \u00d7 100.<\/strong><\/p>\n

The figure 261.42 is the base CPI-IW average (2016 base year) set under the 7th Pay Commission.<\/p>\n

7th Pay Commission DA Hike: How Much Will Salary Increase?<\/strong><\/p>\n

On a 3% DA hike, the salary of the entry-level central government employee, who has a basic salary of around Rs 18,000 per month, will increase nearly Rs 540 per month, effective from July 1, 2025.<\/p>\n

If somebody\u2019s salary is Rs 30,000 per month and has Rs 18,000 as the basic pay, he or she now gets Rs 9,900 as dearness allowance, which is 55 per cent of the basic pay. However, after the expected 3 per cent hike, the employee will get Rs 10,440 per month, which is Rs 540 higher.<\/p>\n

When Will The 8th Pay Commission Be Formed?<\/strong><\/p>\n

Though the 8th Pay Commission was announced in January 2025. The government has yet to define the Terms of Reference (ToR) or appoint members to the new commission. According to a report by Kotak Institutional Equities, the 8th CPC is unlikely to be implemented before late 2026 or early 2027 as the 8th CPC ToR and members are yet to be announced.<\/p>\n

The 6th and 7th CPCs took roughly 1.5 years to prepare their reports after being set up, followed by a 3-9 month implementation window after the Cabinet approval.<\/p>\n

The brokerage firm also said a fitment factor of 1.8 might be adopted, and the minimum pay level is likely to increase from Rs 18,000 to Rs 30,000 per month.<\/p>\n

The fitment factor is a multiplier used to revise the basic salary of central government employees based on recommendations by a Pay Commission; it adjusts the existing pay structure to arrive at the new pay levels.<\/p>\n

Kotak stated that the fiscal cost of the 8th CPC is expected to be in line with previous pay commissions, amounting to around 0.6-0.8% of GDP. That translates into an additional government expenditure of Rs 2.4-3.2 lakh crore.<\/p>\n

Roughly 3.3 million central government employees would be directly impacted, with Grade C staff, who make up nearly 90% of the workforce, benefiting the most.<\/p>\n

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\"Mohammad<\/figure>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Click here<\/a> to add News18 as your preferred news source on Google. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
First Published:<\/span><\/p>\n
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September 18, 2025, 12:54 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> Central Govt Employees Likely To Get 3% DA Hike Before Diwali; Salary To Rise From July 2025<\/span><\/div>\n
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Last Updated:September 18, 2025, 12:54 IST 7th Pay Commission DA Increase: After the expected 3% hike, the dearness allowance for central government employees will increase to 58%. July 2025 DA Hike. DA Hike July 2025, DA Hike Latest News: Central government employees may soon get festive cheer on the salary front, as the Centre is…<\/p>\n","protected":false},"author":1,"featured_media":7584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-13828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/13828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=13828"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/13828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/7584"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=13828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=13828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=13828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}