Latest news with #AICPI-IW
India.com
2 days ago
- Business
- India.com
7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
Home Business 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55 percent to 59 percent. 7th Pay Commission: Centre (Representational Image) 7th Pay Commission: The Modi government is likely to increase the Dearness Allowance (DA) of Central government employees from 55 percent to 59 percent, effective July 2025. According to the reports, this anticipated adjustment is based on recent inflation data, particularly the rise in the All India Consumer Price Index for Industrial Workers (AICPI-IW). It is important to note that this DA hike i.e for July-December period, is going to be the last DA hike under the 7th Pay Commission because from January 2026 the government has announced to implement the 8th Pay Commission. According to the data released by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for May 2025 increased by 0.5 point and stood 144.0 (one hundred forty four). Year-on-year inflation for the month of May 2025 stood at 2.93 percent as compared to 3.86% in May, 2024. The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. DA Hike Formula Under 7th Pay Commission Dearness Allowance is revised biannually, in January and July, based on the average AICPI-IW data over the past twelve months. The formula for calculating DA is: A (%) = [(Average CPI-IW for past 12 months – 261.42) / 261.42] 100. Using this calculation method, the expected hike is estimated at 4 percent. Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time? The rise in AICPI-IW figures over the past three months — March, April, and May — suggests that the expected Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners could reach approximately 58.08%. Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55% to 59%. This adjustment is anticipated ahead of the implementation of the 8th Pay Commission in January 2026. Announcement Expected in September or October It is important to note that the DA hike will take effect from July, however, the official announcements typically occur later. In previous years, such revisions have been disclosed in September or October, often coinciding with the festive season. This year, the announcement is also anticipated around Diwali. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on
India.com
3 days ago
- Business
- India.com
Is 4% Dearness Allowance Hike In The Offing? Calculation Explained For Last DA Hike Under 7th Pay Commission
photoDetails english 2929537 Updated:Jul 10, 2025, 09:19 AM IST Last DA, DR Hike Under 7th Pay Commission 1 / 8 The AICPI-IW Figures for May 2025 released by Labour Beaureau recently has once again grabbed attention on the expected Dearness Allowance (DA) and Dearness Relief (DR) hike for lakhs of govt employees and pensioners which is due for July-December 2025. May 2025 AICPI-IW Figures Hint At DA Updates Ahead Of 8th Pay Commission 2 / 8 As per the data published by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for May 2025 increased by 0.5 point and stood 144.0 (one hundred forty four). Year-on-year inflation for the month of May 2025 stood at 2.93% as compared to 3.86% in May, 2024. The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. May 2025 AICPI-IW Figures Vs April, March Data 3 / 8 The rise in May 2025 AICPI-IW Figures comes after rise in the last two months of the CPI-IW. March 2025, the All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 143.0, representing a 0.2-point increase from the previous month. Year-on-year inflation for the month of March, 2025 stood at 2.95% as compared to 4.20% in March, 2024. The All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 143.5 in April. Year-on-year inflation for the month of April, 2025 stood at 2.94% as compared to 3.87% in April, 2024, according to the Labour Bureau. Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time? 4 / 8 This increase of figures in the last three months AICPI-IW --March, April and May – hint towards expected DA, DR for central government employees and pensioners at around 58.08 percent. On the basis of the figure, media reports have calculated a hike of 3% hike from July 2025. DA will be thus likely be pushed from current 55 percent to 58 percent, ahead of the implementation the 8th Pay Commission from January 2026. July-December 2025 DA Hike Predictions 5 / 8 These are however just early DA, DR hike predictions. It all depends on the AICPI-IW figures for the next month i.e for June 2025, to arrive at a concrete conclusion on DA hike for central government employees and pensioners. DA Hiked To 55 Percent For Jan-June 2025 6 / 8 Much to market expectations, the Union Cabinet led by PM Narendra Modi on March 28 announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees. The Modi government announced hike in the dearness allowance by 2 percent, thus taking the DA from 53 percent to 55 percent. 7th Pay Commission DA Hike: How Much Salary Increased Last Time? 7 / 8 The basic salary of the employee is Rs 18,000 Dearness Allowance Hiked To 55 Percent: Pay increase of Rs 360 more per month New Dearness Allowance Annually: Rs 4,320 DA Hike Twice A Calendar Year 8 / 8 Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.
India Today
4 days ago
- Business
- India Today
Will central government employees' dearness allowance reach 60%?
Central government employees and pensioners are waiting for a possible 3% hike in Dearness Allowance (DA) and Dearness Relief (DR), effective from July this announcement is not usually made in July. Traditionally, it is declared around the festive season, that is in September or October. But the benefit is calculated from government revises the DA/DR rates twice a year, effective from January 1 and July 1. However, the official announcement generally comes a few months instance, a hike applicable from January is usually announced in March, while the hike due from July is declared in September or October. The DA announcement for July 2025 is also expected to follow the same the current data leads to a 3% hike, the total DA would increase from 55% to 58%.HOW IS DA CALCULATED?DA is calculated based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW). In March 2025, the index was 143 and has reached 144 by May. If this trend continues, the possibility of a 3% hike becomes the implementation of the 7th Pay Commission, DA rates have steadily gone up. In 2016, DA was at 0%, and by January 2025, it had reached 55%. With a likely 3% hike in July, the figure could go up to 58%. After the next review in January 2026, if there's another 2% increase, DA may touch 60%.The proposed 8th Pay Commission, which may be implemented from January 2026, could merge the accumulated DA, possibly up to 60%, into the basic salary. This is a standard procedure during pay commissions, where the salary structure is revised and DA calculation starts afresh from the moment, this is a possible estimate based on the inflation index. But the final decision will be taken by the central government after Cabinet approval. Employees and pensioners will have to wait a few more months for the official announcement.- Ends advertisement
India Today
04-07-2025
- Business
- India Today
DA hike July 2025: 4% increase likely for central government employees
Central government employees are likely to receive a 4% hike in Dearness Allowance (DA) from July 2025, according to reports based on recent inflation move will increase the DA from the current 55% to 59%. While the hike will be effective from July, the official announcement is expected to be made in August or closer to the festive season in September or LIKELY TO REACH 59% BASED ON CPI DATAThe All India Consumer Price Index for Industrial Workers (AICPI-IW), which is the basis for DA calculation, rose by 0.5 point in May 2025 to 144. The index has shown a steady increase over the past three months, it was 143 in March, 143.5 in April, and now stands at 144 for the index continues this upward trend and rises to 144.5 in June, the 12-month average of the AICPI-IW is expected to reach around 144.17. When adjusted using the 7th Pay Commission's formula, this will translate into a DA rate of approximately 58.85%. Rounded off, the government could approve a 59% DA from July HIKE FORMULA UNDER 7TH PAY COMMISSIONDearness Allowance is revised twice a year, in January and July. It is based on the average of AICPI-IW data over the past 12 months. The formula for calculating DA is:DA (%) = [(Average CPI-IW for past 12 months – 261.42) 261.42] 100Here, 261.42 is the base value for calculation. Using this method, the expected hike is currently estimated at 4%.ANNOUNCEMENT EXPECTED IN SEPTEMBER OR OCTOBERAlthough the DA hike will be effective from July, it is usually announced later. In previous years, the government has announced such revisions in September or October, often around the festive period. This year, the announcement is also expected around will be the final DA hike under the 7th Pay Commission, whose term ends on 31st December 2025. The 8th Pay Commission was announced earlier this year in January, but there has been no further progress. The government is yet to appoint a chairman and members for the new commission. The Terms of Reference (ToR) are also OF 8TH PAY COMMISSION MAY TAKE TIMEGoing by past trends, a new pay commission usually takes about 18 to 24 months to submit its report and have it implemented. If the same timeline is followed, the recommendations of the 8th Pay Commission are likely to come into effect only by means central government employees and pensioners will continue to receive DA hikes based on their current basic pay until LIKELY TO BE PAID FROM 2026While the implementation of the 8th Pay Commission may be delayed, the government is expected to make the new pay structure effective from January 1, means that any salary or pension hike under the new commission will be paid as arrears for the period between January 2026 and the actual rollout expected DA hike in July 2025 will bring some relief to government employees as they await clarity on the timeline for the next pay commission.- Ends advertisement
India.com
03-07-2025
- Business
- India.com
7th Pay Commission: Good news for government employees as DA maybe increased by...; check announcement, key details
Representational Image 7th Pay Commission: In some major good news for central government employees, the Union government is likely to increase the Dearness Allowance (DA) and Dearness Relief (DR) by 4 percent under the 7th Pay Commission regime. The announcement is expected to be made in August, but the benefits will be implemented from July itself, according to reports. How much will be DA hike for central govt employees? The DA hike will depend on the All India Consumer Price Index (AICPI-IW), which increased by by 0.5 points to 144 in May 2025. The index has increased for three consecutive months, from 143 in March, 143.5 in April and 144 in May. Considering this trend, its likely that dearness allowance could increase from 3-4 percent from July. The final DA hike will be determined by June 2025 AICPI-IW data, which will be released in August. In case of a 3 percent increase, the DA will be hiked to 58%, from the current 55%, while a 4 percent hike would mean a 59% DA for central government employees. When will the DA hike be announced? The CPI-IW data for June is expected in late July or early August, which would give the Union Cabinet a basis to decide the dearness allowance hike under the 7th Pay Commission regime. The announcement is likely to come in mid-August, but the hike, along with arrears from July, are expected to be available to employees by late September or early October 2025. What about 8th Pay Commission? If we go by previous implementation of previous pay commissions, it usually takes about 18 to 24 months for the government to implement the recommendations. Thus, its unlikely that 8th Pay Commission would be implemented before 2027.
