7th Pay Commission: Dearness Allowance will be 59% in September! Government can announce it during Navratri

7th Pay Commission: Government employees may get good news in the next month of September. Under the 7th Pay Commission, the Dearness Allowance (DA) of government employees is to increase. The government has increased the DA every time before Diwali. This time Navratri starts from September.

7th Pay Commission: Government employees may get good news in September next month. Under the 7th Pay Commission, the Dearness Allowance (DA) of government employees is to increase. The government has increased DA before Diwali every time. This time Navratri starts from September. It is expected that the government may announce an increase in DA in September. The government may announce DA anytime but it will be considered applicable from July 1, 2025.

How much will DA increase

It is expected that DA can be increased by 3 to 4% in July 2025. That is, the DA of employees can increase to 58% or 59%. The government increases DA twice every year. For the first time, the announcement for January is made in February-March. The government may announce it anytime but it is considered applicable from January 1. For the second time, the announcement for July is made in September-October. It is considered applicable from July 1. It does not matter when the government is announcing it. Employees get that much arrears along with the salary.

How is DA decided?

DA is calculated on the basis of Consumer Price Index (CPI-IW) for industrial workers. This figure is released by the Labor Ministry every month.

According to the formula of the 7th Pay Commission, DA (%) is decided in this way

DA (%) = [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100

Here 261.42 is the base CPI-IW of the year 2016.

DA also depends on inflation data

Although the complete average of CPI-IW is not yet available till May 2025, CPI-AL and CPI-RL have registered a decline for agriculture and rural workers.

CPI-AL: 2.84%

CPI-RL: 2.97%

Both of these are not directly used in DA, but show the trend of inflation.

How much can DA be?

If CPI-IW remains stable or increases slightly till June, the government can increase it by 3% to 4%. This can increase the total DA to 58% or 59%. The final announcement of the increase in DA will be made after the CPI-IW figures come at the end of July and after cabinet approval in September-October. Then its benefit will be available with arrears from July 1, 2025.

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