- By Talibuddin Khan
- Fri, 04 Jul 2025 03:37 PM (IST)
- Source:JND
DA Hike News: Central government employees may soon receive a festive boost, as the government is expected to increase the Dearness Allowance (DA) by 3 to 4 per cent. The DA is revised twice a year, between February to April and September to November, to help employees cope with rising inflation.
Currently, government employees receive 55% DA, which is added to their basic salary. With inflationary pressures continuing, and based on current trends in the Consumer Price Index for Industrial Workers (CPI-IW), a DA hike is expected in the coming months.
DA Hike News: What Is AICPI-IW and How Does It Affect DA?
The All India Consumer Price Index for Industrial Workers (AICPI-IW) is the key benchmark used to determine dearness allowance for both central/state government and industrial employees.
It measures changes in the cost of living and is released monthly by the Labour Bureau. A rise in the CPI-IW typically leads to an increase in DA. If the index falls, the DA may be reduced or kept unchanged.
DA Hike News: CPI-IW Trends in 2025
According to data from the Labour Bureau
- March 2025: CPI-IW stood at 142
- April 2025: Increased slightly to 143
- May 2025: Further rose to 144
This consistent upward trend indicates mounting inflation, which strengthens the case for a DA hike.
DA Hike In July: How Is DA Calculated?
The formula used for DA calculation is (Average of last 12 months AICPI-IW – 261.42) ÷ 261.42 × 100
The 12-month average CPI-IW has now reached 144.17, which translates to a projected DA rate of 58.85%. Therefore, the government may increase the current rate from 55% to 58% or even 59%, implying a 3% to 4% hike.
DA Hike News: What Is Dearness Allowance?
Dearness Allowance is a cost-of-living adjustment paid to employees and pensioners to offset inflation. It is revised twice a year and directly depends on the prevailing inflation levels, as reflected in the CPI-IW. The final announcement regarding the DA hike is expected between September and November 2025, once the June CPI-IW data is released.
