In this, Dearness Allowance stands to get a dividend of sorts. Recent inflation data derived reports state that a rise in DA of 3 or 4 percent may occur, taking the DA from 55 percent to around 58 percent. If this indeed takes place, it would probably be the last increase under the 7th Pay Commission, and might be announced officially during the Diwali festivities (September-October).
Numbers Say Looking At CPI-IW The Trend And The Unexpected Forecast Of DA
The final All India CPI for IW shows that a mere 3% increase is possible; some tentative projection show a figure closer to 4%, depending upon the final index figure of June.
- If enacted, the revision would be made effective from July 1, 2025, and credited in monthly salary accounts in October, as per convention.
Why This Matters: Impact On Employees and Pensioners
DA is the main cost-of-living allowance, helping employees and pensioners keep pace with inflation. An increase of 3% in DA (from 55% to 58%) will go a long way in providing some relief amidst rising household expenses. A further increase by 4% would gratuously magnify its impact.
The Final DA Increase Under The 7th Pay Commission
Hence, this adjustment should be the last DA revision skillfully done by the Seventh Pay Commission as this commission ends by the 31st of December, 2025. The new 8th Pay Commission will thereafter be implemented, probably from early 2026, with DA set to zero once again, according to the revised pay structure.
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