With CPI IW for Feb 2023 published, DA from July 2023 likely to be 45%

The Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month based on retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index is compiled for 88 centres and All-India and is released on the last working day of the succeeding month. The index for the month of February 2023 is being released in this press release.

In February 2023, the All-India CPI-IW dropped 0.1 points to 132.7 (one thirty-two point seven) points. It declined by 0.08 per cent during the course of a month compared to the previous month. The difference between the same months a year ago and this month was 0.08 per cent.

For the central government employees' Dearness Allowance increase, the AI CPI-IW figures will be the foundation. One of the most eagerly awaited pieces of news for CG staff is the increase in Dearness Allowance.

Retail inflation for industrial workers remained flat at 6.16 per cent in February compared to that of January this year.

With the Dearness Allowance hike from the month of January 2023 being approved by the government, the central government staff will now be looking for the DA hike from July 2023. This hike for the central government employees depends on the All India CPI-IW figures from July 2022 to June 2023. While seven of these indices are available, 5 more figures are required for the calculation of the DA from July 2023. It is too early to predict the exact DA from July 2023. However, assuming a nominal change in the CPI indices over the next five months, it is likely that the DA from July 2023 shall see a hike of 3% taking the total DA to 45%.

You can try calculating the DA from July 2023 with the DA calculator here

For details on how the calculation, check out the page New DA calculation formula as per the AI CPI-IW series with base 2016

To know more about the CPI-IW visit page - Understanding the CPI-IW or Consumer Price Index for Industrial Workers