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News India Live, Digital Desk: The AICPI-IW data for April 2025 recently released by the Labor Bureau has once again attracted attention to the expected dearness allowance (DA) and inflation relief (DR) growth for millions of government employees and pensioners, which is payable to July-December 2025.
The AICPI-IW figures of April 2025 indicate DA updates before the 8th Pay Commission
According to the data published by the Labor Bureau, the affiliated office of the Ministry of Labor and Employment, the All India CPI-IW for April 2025 rose 0.5 points to 143.5 (one hundred thirty-three decimal five). The year-by-year inflation for the month of April 2025 was 2.94% compared to 3.87% in April 2024. The bureau is compiling the Consumer Price Index for industrial workers every month based on retail prices collected from 317 markets spread in 88 industrially important centers of the country.
The increase in AICPI-IW data in April 2025 came after the increase in the last two months of CPI-IW. In March 2025, the All India Consumer Price Index (AICPI-IW) for industrial workers was at 143.0, indicating an increase of 0.2 points from the previous month. For the month of March 2025, the inflation was 2.95% compared to 4.20% in March 2024. According to the Labor Bureau, the All India Consumer Price Index (AICPI-IW) for industrial workers was at 142.8 in February 2025.
The increase in data in the last two months AICPI-IW-March and April indicates about 57.95% of DA, expected for central government employees and pensioners. Based on data, media reports have calculated an increase of 3% from July 2025. Thus, before the implementation of the 8th Pay Commission from January 2026, DA will be increased from 55 percent to 58 percent.
July-December 2025 DA hike predictions
However, these are just initial estimates of DA, DR hike. All this depends on the AICPI-IW data for the next two months i.e. May and June 2025, so that no concrete conclusion can be made on the DA hike for central government employees and pensioners.
Dearness allowance increased by 55 percent for January-June 2025
According to market expectations, the Union Cabinet led by Prime Minister Narendra Modi announced the much -awaited dearness allowance (DA) and inflation relief increase for millions of central government employees. The Modi government today announced a 2 percent increase in dearness allowance, increasing the DA from 53 percent to 52 percent.
DA increased from 53 percent to 55 percent: How much will the salary increase?
2 percent DA hike has been the lowest DA growth in the last 7 years. DA has a 2 percent increase in DA since July 2018. The last DA hike was announced in October 2024. The Union Cabinet approved an increase in 3 percent dearness allowance (DA) for central government employees. The central government employees are being given 53 percent dearness allowance of the basic salary, whereas earlier it was 50 percent.
DA hike under 7th Pay Commission: How much was the last time salary increased?
Employee’s basic salary is Rs 18,000
Dearness allowance increased by 55 percent: salary increased by Rs 360 per month
New dearness allowance annually: Rs 4,320
Calendar increase in DA twice a year
The increase in dearness allowance (DA) is 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 DA/DR hike twice a year. However, announcements are made in March and September. This increase is rebuiltly applied between January and July every year.
