By buld_online 
The Jammu and Kashmir government has announced a 2% increase in the Dearness Allowance (DA) for its employees under the 7th Pay Commission. This raise elevates the DA from 53% to 55% of the basic pay. The increment is effective from 1 January 2025, with arrears to be disbursed in June 2025. This development aligns with the central government’s recent move to raise DA for employees and pensioners by 2% for the current calendar year, positioning the DA at 55% overall. The 7th Pay Commission, whose term concludes on 31 December 2025, will see this as its final DA revision.
Central government employees are anticipating a favourable DA revision for the January-June 2025 cycle, which is hoped to be more substantial than the previous one. The next DA instalment, effective from 1 July 2025, is customarily announced around Diwali in October or November. This adjustment marks the culmination of the 7th Pay Commission’s term, necessitating careful financial planning and communication from both the government and employees.
In recent months, the All India Consumer Price Index for Industrial Workers (AICPI-IW) has shown a positive trend, which is a significant indicator for DA hikes. After a steady decline in inflation numbers from November 2024 to February 2025, the index saw an increase by 0.2 points to 143.0 in March 2025. Further growth was recorded in April 2025, with the index rising by 0.5 points, reaching 143.5. This consecutive increase in the index is seen as an encouraging sign for the DA revisions.
The Labour Bureau confirmed, “The All-India CPI-IW for April 2025 increased by 0.5 point and stood at 143.5.” This declaration underlines the positive trajectory of the index, an essential determinant in DA calculations. These indices play a crucial role in shaping government policies on employee compensation, impacting both public employees and pensioners alike.
The revised DA rates are applicable to all government employees in Jammu and Kashmir under the 7th Pay Commission’s regular pay levels, ensuring broad coverage for those within its ambit. According to official notifications, the arrears arising from the increase will be settled in June 2025, and the additional DA will be paid alongside monthly salaries thereafter. This structured approach ensures a smooth transition to the updated pay scale.
As the 7th Pay Commission draws to a close, these developments are being closely monitored by employees and policymakers. The anticipation for the final instalments reflects the broader economic environment and inflationary pressures that affect the purchasing power of public sector employees. The decisions made now will set a precedent for future pay commissions, ensuring that government employees can maintain their standard of living amid varying economic conditions.