DA Hike: Dearness allowance of employees and pensioners will increase by this much; Know when DA-DR will be announced
DA Hike: The central government had last increased the dearness allowance and dearness relief of its employees and pensioners by two percent. Due to this, the rate of DA/DR, which came into effect from January 2025, reached 55. Let us know what is the plan this time.
The central government had last increased the dearness allowance and dearness relief of its employees and pensioners by two 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 Eighth 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 signs of a three percent increase in DA / DR. This possibility is based on the six-month index. The All India CPI-IW increased by 0.5 points to 144.0 for May 2025. 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, an increase of 1.0 point has been registered in the All India Consumer Price Index (Industrial Workers) for June 2025. The six-month data of All-India CPI-IW so far shows that there may be a 3 percent increase in DA / DR 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 the 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.
All-India Group-wise Index, March-April 2025
Group March 2025 April 2025
Food and beverages 146.2 146.5
Pan, betel nut, tobacco and 164.8 165.8
Intoxicants
Clothes and footwear 149.4 150.4
Housing 134.6 134.6
Fuel and light 148.5 152.4
Miscellaneous 138.6 139.0
General index 140.1 140.6
All-India Group-wise Index, May 2025
Food and beverages 146.9
Pan, betel nut, tobacco and Intoxicants 166.6
Clothes and footwear 151.0
Housing 134.6
Fuel and light 153.6
Miscellaneous 141.4
General index 144.0
All-India Group-wise Index, June 2025
Food and beverages 148.6
Pan, betel nut, tobacco and Intoxicants 167.4
Clothes and footwear 152.0
Housing 134.6
Fuel and light 153.5
Miscellaneous 142.0
General index 145.0
SB Yadav, general secretary of the Confederation of Central Government Employees and Workers, 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, there has been a demand 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.
If there is a price increase in January, then it is partially compensated after 12 months. DA should be calculated and paid every three months instead of six months. Point to point DA should be provided. Now DA is rounded off to the minimum value. Like we are eligible for 42.90% DA then we are sanctioned only 42% DA. Central employees are denied 0.9% DA for six months. Central government personnel should be provided point-to-point DA. Employees of banks and LIC get point-to-point DA. There has been a demand to create a separate consumer index for personnel and pensioners.
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