DA Hike Calculations: Is your basic salary in Rs 20,000-Rs 1,50,000 range? Know how much extra monthly pay you may get after 3% July DA rise
Published on 05/08/2025 01:29 PM
DA Hike Calculations: Dearness allowance (DA) is an effective tool for helping central government employees to adjust their basic pay to adjust to rising inflation. The government raises the DA rate twice a year. For January 2025, it was 2 per cent, when DA rose from 53 per cent to 55 per cent. For July, it is all set to be 3 per cent after the June data of the All India Consumer Price Index for Industrial Workers (AICPI-IW) is out. The June data reading is 145, which makes the 12-month data average 143.6. Calculated from the DA formula, the DA rise is all set to be 58.18 per cent, or 58 per cent in terms of rise. The increased DA will be reflected in the salaries once the central government announces it officially. The announcements mostly come during festivals and may happen around Diwali in October.
But how is DA calculated, and after the DA hike, what can be the expected monthly pay rise for employees with basic pays in the Rs 20,000-Rs 1,50,000 range? See our estimates to know-
The 12-month average is 143.57.
DA (%) = [(CPI-IW average × 2.88) – 261.42] ÷ 261.42 × 100
CPI-IW average is the 12-month average of AICPA -IW data
261.42 is the base value for the year 2016 (7th Pay Commission).
It is the 12-month average of AICPA-IW average from January 2015 to 2016.
2.88 is the multiplier the Labour Bureau of the finance ministry issued in October 2020 while launching the revised AICPI-IW index.
Dearness allowance for July 2025 (DA) = [(143.57 × 2.88) – 261.42] ÷ 261.42 × 100
= (413.48 – 261.42) ÷ 261.42 × 100
= 152.06 ÷ 261.42 × 100
= 58.17%
We are calculating how much increase employees with basic pay of Rs 20,000 to Rs 1,50,000 will see their salary rise if DA increases from 55 per cent to 58 per cent.
(Disclaimer: These are projections. Actual revised payouts may vary.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
Deputy News Editor
Zee Business Digital (English) - zeebiz.com
shaghil.bilali@india.com
...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.