DA Hike Data- Finally the good news is here. The central government had last increased the dearness allowance and dearness relief of its employees and pensioners by 2 percent. Due to this, the rate of DA/DR, which came into effect from January 2025, reached 55. Now after six months, a change in the rates of DA/DR is likely again.
The government has announced the formation of the 8th Pay Commission. Its recommendations are to be implemented from January 1, 2026. However, the chairman and members of the commission have not been appointed yet. According to experts, looking at the graph of All India Consumer Price Index (Industrial Workers) from January to June, there are indications of a three percent increase in DA / DR. This possibility is based on the six-month index. The All India CPI-IW for May 2025 increased by 0.5 points to reach 144.0. The All-India CPI-IW for June 2025 has increased by 1.0 points and has been compiled at the level of 145.0 points.
According to the Department of Labor Bureau, the All India Consumer Price Index (Industrial Workers) for June 2025 has registered an increase of 1.0 point. The six-month data of All-India CPI-IW so far shows that DA / DR may increase by 3 percent for central government employees and pensioners from July 1, 2025. The rate of DA / DR is likely to increase from 55 to 58 percent. Possibly, DA / DR can be announced by the Central Government in the last week of September.
The central government had last increased DA by two percent. An important reason for this was the decrease of 0.8 points in the All-India CPI-IW for December 2024. Then the index data released by the Labor Bureau was compiled at 143.7 points. Earlier, dearness allowance was increased by 3 percent on Diwali last year. According to the Seventh Central Pay Commission, dearness allowance and dearness relief are calculated on the basis of the All India Consumer Price Index.
The Consumer Price Index Number (CPI-IW) for Industrial Workers was 139.9 in May 2024, 141.4 in June 2024, 142.7 in July 2024, 142.6 in August 2024, 143.3 in September 2024, 144.5 in October 2024, 144.5 in November 2024 and 143.7 in December 2024. The Consumer Price Index Number (CPI-IW) for Industrial Workers was 143.2 in January 2025. The CPI-IW was compiled at 142.8 in February. The Consumer Price Index Number for Industrial Workers is compiled every month by the Labour Bureau, an office attached to the Ministry of Labour and Employment on the basis of retail prices collected from 317 markets in 88 important industrial centres across the country.
General Index 145.0 Confederation of Central Government Employees and Workers General Secretary SB Yadav had sent a letter to the Cabinet Secretary before the budget session of Parliament this year. In this letter, he had demanded to change the calculator for calculating Dearness Allowance/Dearness Relief i.e. ‘DA/DR’. To decide the rate of DA, the average of 12 months should be replaced by the average of three months.
Meaning, variable DA should be given. This will enable the central government employees to get compensation from the actual price increase every three months. The DA of the employees of public sector banks is decided on this basis. Not only this, a demand has been made to prepare a separate ‘Consumer Price Index’ for central employees and pensioners. According to Yadav, the DA of banking employees is revised every year in every quarter i.e. February-April, May-July, August-October and November-January.