A big gift can be given to central employees before Rakshabandhan by the central government. The government can announce the DA Hike under the 7th Pay Commission. The government can give 3-4 percent dearness allowance to employees only in July 2025. Earlier in March, 2 percent DA was increased, after which it has now increased from 53 percent to 55 percent.
Keeping in mind the inflation, the government gives dearness allowance to central employees working in the government twice a year. The first is from January 1 and the second is effective from July 1. The allowance that was announced in March is considered to be applicable from January 1. At the same time, the announcement that will be announced will be considered effective from 1 July 2025. The DA is given to the central employees and DR is given to the pensioners.
How dearness allowance is decided
The Calculation of DA is done on the basis of data for the Consumer Price Index (AICPI-IW) for All India Industrial Workers. The AICPI-IW index is released on the basis of retail prices running in 317 markets of 88 industrial centers in the country. After this, the government looks at the figures of the last six months before amending the DA.
In March 2025, AICPI-IW was 143, which has increased to 144 by May 2025. Due to this, there is a possibility of 3-4 percent increase in dearness allowance. Which can be extracted according to the formula. In this, calculation is done according to the time base.
Dearness allowance (%) = [(पिछले 12 महीनों का CPI-IW औसत 261.42) ÷ 261.42] × 100
However, the CPI-IW data of May 2025 has not been released by the government. If the government releases that data and inflation remains stable or there is some increase in it. So before Rakshabandhan, the government can increase dearness allowance.