DA hike in July 2025: 12% increase for government employees and pensioners will get relief and economic boost

Last Updated Jul - 01 - 2025, 04:43 PM | Source : Fela News

The central government has increased the dearness allowance by 12%, which will provide high salary benefits to employees and pensioners between inflation and pr

The dearness allowance (DA) starting from July 2025 has been announced by a 12% increase, which will increase from 50% of the basic salary to 62% for central government employees and pensioners. The decision is based on inflation figures shown in the Consumer Price Index (CPF IW) for industrial workers and comes as a significant relief for many people amid rising life costs.

Dearness allowance is a living cost adjustment that is given to employees and pensioners to help reduce the effects of inflation. With this increase, the employee who gets a basic salary of 30,000 will now get an additional 3,600 per month to increase from 15,000 to 18,600 DA. Similarly, pensioners will benefit through an increase in inflation relief (DR), which reflects DA percentage.

This increase is part of the regular DA modification process to be done twice a year in January and July. The revised DA will appear in the payslip of July or August, as well as if there is an outstanding. The government hopes that the annual cost of this increase will be around 17,000 crores, but also expect positive effects, such as increase in consumer spending, especially in Tier-2 and Tier-3 cities, Economists believe that additional disposable income will promote market demand, especially during the upcoming festive season, and small businesses will be supported.

For many families, it is timely financial assistance against inflation-powered value increase on essential commodities. Overall, an increase in the July 2025 dearness allowance is not just a increment, it is a comprehensive economic incentive and the government's commitment to support its employees and retired people in the time of financial pressure is re -confirmed.