7th Pay Commission: AICPI-IW Drops 0.5 Points Before Expected DA Hike for Central Govt Employees
Mumbai, March 18: A decision on the Dearness Allowance (DA) hike for central government employees is expected soon, with reports suggesting it could be taken in the upcoming Cabinet meeting chaired by Prime Minister Narendra Modi, usually held on Wednesdays.
The All India Consumer Price Index for Industrial Workers (AICPI-IW) for January 2025 has dropped by 0.5 points to 143.2, just before the anticipated DA revision. This marks the second consecutive month of decline, as December 2024 saw a 0.8-point drop to 143.7.
The Labour Bureau, under the Ministry of Labour and Employment, compiles the Consumer Price Index for Industrial Workers (CPI-IW) each month using retail price data collected from 317 markets across 88 key industrial centres in the country. In a press release dated March 13, 2025, the bureau reported that the All-India CPI-IW for January 2025 dropped by 0.5 points to 143.2. 7th Pay Commission January DA Hike: Centre To Raise Dearness Allowance of Government Employees in Coming Week? Know How Much DA Hike Is Expected.
What Is The Expected DA Hike?
The central government has been determining Dearness Allowance (DA) hikes based on AICPI-IW inflation data, following the 7th Pay Commission’s recommendations. A 2% increase in DA, effective from January 1, 2025, has been expected due to recent declines in the index. This has been projected to raise DA from 53% to 55%, increasing the salary of an entry-level Multi Tasking Staff (MTS) with a basic pay of INR 18,000 by INR 360. If the hike had been 3%, the increase would have been INR 540. 7th Pay Commission: Union Cabinet To Approve 2% DA Hike Soon? Here’s What To Expect.
The DA hike has been set to take effect from January 1, 2025, and employees have been assured that they will receive arrears for the increased amount. DA has been revised twice a year to help employees manage inflation, calculated as a percentage of their basic pay.
(The above story first appeared on Today News 24 on Mar 18, 2025 05:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
