CPI IW dips marginally. 3% to 4% hike in DA expected from July 2024

Update: Cabinet Approves DA hike from January 2024. With 4% hike, DA touches 50% milestone

The Consumer Price Index – Industrial Workers (CPI-IW) for January 2024 has dipped slightly, from 139.1 in December 2023 to 138.9. This decrease is mainly due to lower prices of certain food items.

The Dearness Allowance or DA, which impacts the salaries of millions of central government employees and pensioners, is calculated based on the average of the CPI-IW over the previous 12 months. The DA is revised on the first of January and July every year. With six of the twelve indices required for calculating DA from July 2024 already available, an estimated hike of around 53% is projected, translating to a 3% increase from the current rate. This promising outlook is further bolstered by the possibility of the DA reaching 54% if the remaining six indices follow an upward trend by 5 points on average in the next six months.

Adding to the positive news, the cabinet is also expected to address the issue of DA for January 2024 during the second week of March, potentially even before the upcoming Holi festival. This decision will provide much-needed clarity and potentially financially relieve central government employees.

While news regarding the DA hike brings much-needed relief, employees are also eagerly awaiting an update on the long-awaited 8th Pay Commission. Although no official announcement has been made yet, the anticipation is high, especially considering the upcoming elections.

In conclusion, the current situation presents a promising outlook for central government employees. They can look forward to a potential DA hike and, hopefully, receive news on the 8th Pay Commission soon. However, it is crucial to stay updated on official announcements and reports from the government for further details and confirmation.

DA Hike Likely in July 2024:

• The CPI-IW for January 2024 stands at 138.9, down from 139.1 in December 2023. This decrease indicates a potential increase in DA, which is calculated based on the CPI-IW.
• With six out of the twelve indices required for calculating DA from July 2024 already available, estimates suggest a DA hike of around 53%, which translates to a 3% increase from the current rate.
• If the remaining six indices follow a similar trend and increase by an average of 5 points each in the next six months, the DA could potentially reach 54%.

Trey out the DA calculation yourself. StaffCorner July 2024 DA hike Calculator

Update: Cabinet Approves DA hike from January 2024. With 4% hike, DA touches 50% milestone