New Delhi, India - The All-India Consumer Price Index for Industrial Workers (CPI-IW) for the month of October 2023 has witnessed a significant surge, increased by 0.9 points and stood at 138.4 (one hundred thirty eight point four). On 1-month percentage change, it increased by 0.65 per cent with respect to previous month compared to increase of 0.91 per cent recorded between corresponding months a year ago.
The CPI-IW indices play a pivotal role in determining the Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. With data from January to December 2023 influencing the DA calculation from January 2024, the average increase in CPI-IW figures suggests a potential 4% hike in DA. This would elevate the total DA figure to 50%, a substantial boost in the financial benefits for government employees.
The current trend suggests that even if subsequent indices remain stagnant or slightly decrease, the DA is still poised to reach the 50% mark. This anticipation has raised excitement among central government employees, who are eagerly awaiting the final DA announcement.
Meanwhile, the formation of the Eighth Pay Commission is also on the horizon, with expectations of further revisions to employee salaries and benefits. As the general election approaches, central government employees can expect more concrete news regarding the Eighth Pay Commission in the near future.
CPI-IW for October 2023 reaches 140, driven by inflation in food and beverages.
Potential 4% hike in DA expected from January 2024, pushing the total DA to 50%.
Eighth Pay Commission announcement anticipated ahead of general elections.
Stay tuned for further updates on the DA hike and the Eighth Pay Commission's formation.