Central Employees Will Get 4% DA in July 2025 : Government employees eagerly wait for dearness allowance every year. At present, to deal with the rising inflation, dearness allowance i.e. DA (DA Hike News) is given along with the basic salary of all the employees.
Central Employees Will Get 4% DA in July 2025
Dearness allowance increases every year between February to April and September to November. Different estimates are already being made regarding the dearness allowance to be announced between September to November. In view of the increasing CPI-IW index, there is an estimate of increase in dearness allowance as well. First let us know what is CPI-IW or AICPI-IW?
What is AICPI-IW and How It Affects Dearness Allowance?
AICPI-IW or CPI-IW is mainly used to decide dearness allowance. Dearness allowance of central / state government and industrial employees is decided on the basis of CPI-IW. In a way, it is a group of CPI (Consumer Price Index).
If there is an increase in AICPI-IW, it means that dearness allowance will increase. On the other hand, if there is a decline in it, then there will be a reduction in dearness allowance as well.
AICPI-IW Index Rising : Index Reaches 144 in May 2025
If we believe the data from the website of Labourbureau, then an increase is being seen in it since March.
CPI-IW was recorded as 143 in March 2025, then it was recorded as 143.5 in April 2025. After this, in May 2025, it increased by 0.5 to 144.
How is Dearness Allowance Calculated Using AICPI-IW Data?
A formula related to CPI-IW is used to calculate dearness allowance.
12 months average AICPI-IW- 261.42 / 261.42 x 100
12 months AICPI-IW average has reached 144.17. According to this, this time dearness allowance should be 58.85 percent. Currently it is 55%, which can be increased to 58% or 59%. This means that dearness allowance can increase by 3 to 4 percent.
What is Dearness Allowance?
To deal with rising inflation, every employee is given dearness allowance along with basic salary. It is revised twice every year. How much increase or decrease is to be made in it is decided on the basis of the current inflation. CPI-IW data is taken to calculate it.
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