CPI-IW for Jan '22 down by 0.3 points. 37% DA from July '22 likely. 34% from Jan

The Labour Bureau, under the M/o Labour & Employment, has published the All India Consumer Price Index for Industrial Workers (CPI-IW) for the month of January 2022. The All-India CPI-IW for the month of January 2022 decreased by 0.3 points and now stands at 125.1 (one hundred twenty-five and point one). On 1-month percentage change, it decreased by 0.24 per cent with respect to previous month compared to decrease of 0.51 per cent recorded between corresponding months a year ago

This is the second consecutive month, the index is declining. The index had declined by the same 0.3 points. However, the reduction was minor and the calculation shows that the Dearness Allowance will still be 34% from January 2022. Read CPI-IW down by 0,3 pts. DA from Jan '22 still to be 34%, 37% from July.

The Dearness Allowance hike is one of the most awaited news for central government employees & staff. The CPI-IW index for the month of January will not impact the DA hike from January 2022. However, it will be used for the calculation of the Dearness Allowance from July 2022. The Dearness Allowance for the Central Government Employees, which is updated every year in January and July are calculated based on 12 monthly averages of the All India Consumer Price Index for Industrial Workers (CPI-IW).  For calculation, details click here

The CPI-IW for the month of January 2022 will be used for the calculation of the Dearness Allowance from July 2022 and five more indices are required for this calculation. However rough estimate shows that the DA from July 2022 is expected t be 37%, a hike of 3%.

The DA from January 2022 which will be 34% as per the calculation is expected to be announced by the government this month. This will be happy news for the central government employees who can see a small hike in their take-home salary. 

More to explore:

Expected Dearness Allowance (DA) from January 2022 Calculator
Expected Dearness Allowance (DA) from July 2022 Calculator