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The CPI-IW index rose by 0.2 points to 143.0 in March. Under the 7th commission, the DA / DR hike is calculated by taking the average of 12 months of CPI-IW.
The CPI-IW index increased by 0.2 points to 143.0 in March.
DA Hike For July 2025: The Dearness Allowance helps the government employees and pensioners to counter the rising general prices of items known as inflation. It is a cost-of-living adjustment, which is revised twice a year for the January to June cycle and the July to December cycle.
The Union Cabinet, headed by Prime Minister Narendra Modi, had hiked DA by 2 per cent in March this year. The hike was applicable from January 1, 2025, and benefited more than one crore employees and pensioners.
With this revision, Dearness Allowance (DA) was increased from 53% to 55%, providing a salary boost for government employees. The previous DA hike occurred in July 2024, when it was raised from 50% to 53%.
Next DA Hike 2025
Now, government employees and pensioners are looking forward to the next DA hike update for July-December 2025 period. It will be the last scheduled dearness allowance hike under the 7th Pay Commission. It is expected to be announced around October/ November.
The DA hike is announced twice a year – once in March/April and a second one in October/November.
Why Does CPI-IW Of March 2025 Indicate A Better Next DA Hike?
The Labor Bureau under the Ministry of Labor has released the All India Consumer Price Index for Industrial Workers (CPI-IW) data for March 2025, bringing some optimism.
The CPI-IW index increased by 0.2 points to 143.0 in March.
The CPI-IW index stands for the Consumer Price Index for Industrial Workers. It measures inflation specifically for industrial workers in India by tracking changes in the prices of a basket of goods and services.
It is a positive sign because DA hike calculation is linked to CPI-IW data. Under the 7th commission, the DA / DR hike is calculated by taking the average of 12 months of CPI-IW.
Previously, there was a continuous decline in inflation numbers based on AICPI-IW from November 2024 until February 2025. Now, as the trend has been shifted, there’s a optimism that government employees and pensioners will get a good DA hike based on higher CPI-IW.
How Much DA Hike Will Be Expected?
Based on the average until March 2025, the projected DA has reached 57.06%. If the CPI-IW figures stay stable or increase slightly in April, May, and June 2025, this average could rise to 57.86%. Typically, the DA hike percentage is rounded to the nearest whole number.
Therefore, if the average exceeds 57.50%, the DA may increase to 58%. If it stays below 57.50%, the DA may remain at 57%. This implies that a 2% or 3% rise in DA is likely in July 2025.
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